What is the term COGS commonly used to describe in logistics?

The term COGS refers to "Cost of Goods Sold." In the context of logistics and supply chain management, COGS represents the direct costs attributable to the production of the goods that a company sells. This includes the cost of materials and labor directly used to create the product. Understanding COGS is crucial for logistics specialists, as it impacts pricing strategies, inventory management, and overall financial analysis of a company’s performance. An accurate calculation of COGS enables better forecasting and aids in assessing the profitability of products and services.

The other options pertain to different logistical or operational concepts but do not align with the standard financial terminology used in logistics concerning inventory costs and sales.