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> SaaS companies can have non-negligible COGS since they have (virtual or otherwise) server costs. Is payroll not in that COGS equation?
by MuffinFlavored 7y ago
> SaaS companies can have non-negligible COGS since they have (virtual or otherwise) server costs.
Is payroll not in that COGS equation?
- mikeyouse 7y agoCOGS typically includes payroll for employees whose labor is directly tied to production but doesn't include 'overhead' employees and other categories like rent / legal / sales / marketing. The best way to think about it: "If we had 0 sales, would this expense still exist?" If it wouldn't exist, it's COGS.