Cost Of Revenue

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DEFINITION of 'Cost Of Revenue'

The total cost of manufacturing and delivering a product or service. Cost of revenue information is found in a company's income statement, and is designed to represent the direct costs associated with the goods and services the company provides. Indirect costs, such as salaries, are not included

BREAKING DOWN 'Cost Of Revenue'

Cost of revenue is different from cost of goods sold (COGS) because it includes costs outside of production, such as distribution and marketing. The service industry often favors the use of this metric because it is a more comprehensive account of the various costs associated with selling the final good.

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