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

INVESTOPEDIA EXPLAINS '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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RELATED FAQS
  1. What are some examples of industries that cannot claim cost of goods sold (COGS)?

    Generally speaking, the Internal Revenue Service, or IRS, allows you to deduct the cost of goods that you either make or ... Read Full Answer >>
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