Automotive cost of sales


Automotive cost of sales equals the Cost of Goods Sold (COGS) from automotives

This value is calculated by counting all of the Cost of Goods Sold (COGS) - or the cost of the labor and material necessary to produce all the automotives produced.

This metric is used mostly in the Auto Manufactuerers Industry to judge what it costs them to produce their goods. This is a good metric for comparing how competitive a company is as compared to its similar competitors. All else equal, a lower automotive cost of sales is seen as better. However, it must be noted that this metric can be misleading when comparing companies of different size. For example, a large corporation is expected to have a higher total automotive cost of sales than a smaller one since it produces a sheer greater number of vehicles.

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