What is the primary purpose of calculating COGS?

سی او جی ایس کا حساب لگانے کا بنیادی مقصد کیا ہے؟

To determine total revenue

To measure production efficiency

To calculate gross profit

To determine operating expenses

The primary purpose of calculating COGS is to calculate gross profit, which is revenue minus COGS.

This helps evaluate profitability and make business decisions, such as pricing and cost control.