Spongetech Delivery Systems, Inc. (fka SPNGQ)

[StarterKit]

Not neccessarily. In the beginning of a new product life cycle, new costs are added. For instance, the cost of new molds, design costs for those moulds, if the product needs a different size package then new dies are required to produce the new packaging, advertising also comes under cost of goods sold - need to advertise that new product to get sales. As the life cycle of the product grows, it needs less advertising to maintain momentium, dies and moulds only need replaced when broken or worn out, no new design costs because using the same dies and moulds. Cost of goods sold will usually rise as a percent of sales at first, but then drop as production continues.