What is the COGS percentage goal for variance?

The goal for the COGS (Cost of Goods Sold) percentage variance is set to be between 0% and -2% for total COGS, which reflects an acceptable margin for variance in the cost management of operations. This range indicates that while striving for efficiency in managing costs, a small negative variance (up to -2%) is tolerable, suggesting that the actual costs can be slightly lower than the planned amounts. It allows for fluctuations or minor discrepancies in cost while still maintaining operational efficiency and profitability.

Maintaining a variance in this range helps ensure that the business is not overspending excessively, yet also acknowledges that some level of variance can occur without significant negative impact on overall financial health. The potential for a minor negative variance provides flexibility in real-world operations where unexpected costs may arise, while still striving towards cost-effectiveness.