Why Most Cannabis COGS Would Fail an Audit — and How Operators Can Fix It

By David Kay, CPA, CMA, CFE
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Defensible COGS isn’t only about minimizing tax liability. Accurate costing enables operators to understand true unit economics, identify profitable SKUs, set pricing intelligently, evaluate yield performance, and allocate capital effectively. Tax optimization becomes a byproduct of operational discipline rather than a risky accounting maneuver.

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