Cost Of Revenue


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


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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.

  1. Distribution Channel

    The chain of businesses or intermediaries through which a good ...
  2. Manufacturing Production

    The creation and assembly of components and finished products ...
  3. Cost Of Goods Sold - COGS

    Cost of goods sold (COGS) are the direct costs attributable to ...
  4. Income Statement

    A financial statement that measures a company's financial performance ...
  5. Marketing

    The activities of a company associated with buying and selling ...
  6. Elastic

    A situation in which the supply and demand for a good or service ...
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