What is the difference between revenue and cost of goods sold called?

What is the difference between revenue and cost of goods sold called?

In finance, a company’s gross margin is simply the difference between revenue and cost of goods sold (COGS) divided by that revenue figure.

Is cost of goods sold a revenue?

On your income statement, COGS appears under your business’s sales (aka revenue). Deduct your COGS from your revenue on your income statement to get your gross profit. Your COGS also play a role when it comes to your balance sheet.

Do you subtract cost of goods sold from revenue?

Cost of goods sold (COGS) includes all of the costs and expenses directly related to the production of goods. COGS excludes indirect costs such as overhead and sales & marketing. COGS is deducted from revenues (sales) in order to calculate gross profit and gross margin.

What’s included in cost of revenue?

Cost of Revenue is directly attributable to a company’s goods or services. It includes the manufacturing, production, and distribution cost of a product or service to its customers.