Direct Materials
Materials, ingredients, parts and components used in your products, services and packaging.
Direct Labor
Labor used to produce, inspect and deliver products and services.
Production Overhead
Overhead costs such as rent and utilities that can be directly tied to production of your products and services. For example, the rent for a factory or restaurant.
Logistics
The cost of logistics including freight, warehousing and shipping goods to customers.
Inventory Adjustments
Inventory costs such as write-downs.
Import Duties & Tariffs
Costs for customs duties and tariffs on imported goods.
| Overview: Cost Of Revenue | ||
Type | ||
Definition | Direct costs incurred to generate revenue. | |
Also Known As | Cost of Goods Sold (COGS) | |
Notes | For a given item, cost and revenue are reported together. In other words, cost of revenue is matched to the revenue reported for a given period. | |
Related Concepts | ||
