Toimitushinnan

Toimitushinnan, also known as the cost of goods sold (COGS) in English, is a fundamental accounting term that represents the direct costs incurred by a business to produce and deliver goods to its customers. It includes the cost of raw materials, labor, and other direct expenses necessary to manufacture or acquire the goods. Toimitushinnan is a crucial metric for businesses as it directly impacts their profitability. By understanding and managing toimitushinnan, companies can make informed decisions about pricing, production efficiency, and overall financial health. It is typically calculated by subtracting the ending inventory from the beginning inventory and adding the cost of goods available for sale during a specific period. This figure is then used to determine the gross profit, which is the difference between the revenue generated from sales and the toimitushinnan. Effective management of toimitushinnan can lead to improved profitability and competitive advantage in the market.