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Cost of revenue information


Cost of revenue is the total of all costs incurred directly in producing, marketing, and distributing the products and services of a company to customers.

Cost of revenue can be found in the company income statement. Generally, any costs that are directly connected with manufacturing and distribution of goods and services can be added to cost of revenue (i.e. direct costs). Indirect costs (e.g. depreciation, salaries paid to management or other fixed costs) are excluded.

Cost of revenue is different from Costs of Goods Sold (COGS) in that it includes costs such as distribution and marketing.

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Cost of revenue

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Cost of revenue is the total of all costs incurred directly in producing, marketing, and distributing the products and services of a company to customers...

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Revenue

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Net income

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It is different from gross income, which only deducts the cost of goods sold from revenue. For households and individuals, net income refers to the (gross)...

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Cost of goods sold

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profit = net sales – cost of goods sold – operating expense – taxes – interest Accounting standards Average cost method Cost of revenue Gross margin Income...

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Revenue theory of cost

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Profit maximization

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of product, the additional revenue gained from selling it is called the marginal revenue ( MR {\displaystyle {\text{MR}}} ), and the additional cost to...

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Cost

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costs Semi-variable cost Total cost Variable cost Gross profit is revenue minus the cost of goods sold. O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics:...

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Profit margin

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use the cost of revenue (the total cost to achieve a sale) instead of the cost of goods sold (COGS). It is calculated as: Gross Profit = Revenue − ( Direct...

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Variable cost

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an entire range of time horizons. Cost Fixed cost Cost accounting Cost curve Cost driver Semi variable cost Total cost Total revenue share Contribution...

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Total cost

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rate of change in Total Revenue with Quantity Semi-variable cost Cost curve Total cost of acquisition Total cost of ownership Environmental full-cost accounting...

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Marginal cost

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economics, the marginal cost is the change in the total cost that arises when the quantity produced is increased, i.e. the cost of producing additional quantity...

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Revenue sharing

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marketing is also known as cost per sale, in which the cost of advertising is determined by the revenue generated as a result of the advertisement itself...

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Total revenue

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total revenue helps firms to make these decisions because the profit that a firm can earn depends on the total revenue and the total cost. Total revenue can...

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Marginal revenue

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with marginal cost to be considered. In a perfectly competitive market, the incremental revenue generated by selling an additional unit of a good is equal...

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Gross margin

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Gross margin is the difference between revenue and cost of goods sold (COGS), divided by revenue. Gross margin is expressed as a percentage. Generally...

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Revenue center

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accountable for revenue only. A revenue center is one of the five divisions of a responsibility center – cost center, revenue center, profit center, contribution...

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Levelized cost of electricity

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levelized cost of heat or levelized cost of heating (LCOH), or levelized cost of thermal energy. The LCOE "represents the average revenue per unit of electricity...

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Cost curve

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In economics, a cost curve is a graph of the costs of production as a function of total quantity produced. In a free market economy, productively efficient...

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Revenue recognition

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The revenue recognition principle is a cornerstone of accrual accounting together with the matching principle. They both determine the accounting period...

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Opportunity cost

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In microeconomic theory, the opportunity cost of a choice is the value of the best alternative forgone where, given limited resources, a choice needs to...

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Cost accounting

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Cost accounting is defined by the Institute of Management Accountants as "a systematic set of procedures for recording and reporting measurements of the...

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Cost per mille

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Similarly, revenue can be expressed in terms of Revenue per mille (RPM). In email marketing, CPM (cost per mille) refers to the cost of sending a thousand...

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Cash flow

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depreciation OCF = (revenuecost of good sold − operating expense − depreciation)* (1−tax rate)+depreciation OCF = (Revenuecost of good sold − operating...

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Implicit cost

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In economics, an implicit cost, also called an imputed cost, implied cost, or notional cost, is the opportunity cost equal to what a firm must give up...

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