As IT has become more pervasive in most organizations, it has migrated from a supporting role to an enabling role for products and services. As a result, IT costs represent a growing and sometimes significant part of products' and services' total cost — yet many firms lack the IT financial transparency to understand the implications. At one level, this limits executives' ability to optimize or manage their gross margins, while at another level it may even distort the firm's financial accounting reports. Understanding your IT cost of goods sold can lead to a more agile and competitive organization.