Money
Cost of goods sold
The direct costs of delivering what you sell. For software, that's mostly hosting, the third-party services the product relies on, payment fees and customer support. Also called cost of sales, or COGS.
You'll hear it as
Our COGS went up when we moved the AI features onto a paid model.
Why it matters to you.
It's where your infrastructure bill lives, which makes it one of the few finance lines engineers control directly.
Also called COGS, Cost of sales.
Related terms.
Videos.
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