Final answer:
The COGS as a percentage of the net sales revenue is found by dividing the cost of goods sold by net sales revenue multiplied by 100. It indicates the portion of sales that goes towards covering the cost of the products sold.
Step-by-step explanation:
The cost of goods sold (COGS) as a percentage of net sales revenue is calculated by dividing the COGS by the net sales revenue and then multiplying the result by 100 to obtain the percentage. It represents the cost of acquiring or manufacturing the products that a company sells during a period, which is then subtracted from total sales to determine the gross profit.
To illustrate, if a company has net sales of $200,000 and the cost of goods sold is $100,000, the COGS as a percentage of net sales would be ($100,000 / $200,000) × 100, which equals 50%.