Any cost that can be directly tied to production of products and services can typically be included in cost of revenue.Costs for sales and marketing, research & development and general administrative expenses are generally not included in the cost of revenue.
Materials, ingredients, parts and components used in your products, services and packaging.
Labor used to produce, inspect and deliver products and services.
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.
The cost of logistics including freight, warehousing and shipping goods to customers.
Inventory costs such as write-downs.
Import Duties & Tariffs
Costs for customs duties and tariffs on imported goods.
|Overview: Cost Of Revenue|
Direct costs incurred to generate revenue.
Also Known As
Cost of Goods Sold (COGS)
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.