Cost of Revenue

Definitions

1. The costs directly associated with generating recognized revenue, often including support, hosting, services delivery, and infrastructure. It is closely related to cost of goods sold but can be defined slightly differently in software businesses.

   In plain English: The direct costs tied to earning revenue.

   Example: "The company improved gross margin by bringing cost of revenue under tighter control."

Related Terms

• Contribution Margin
• Cost of Goods Sold
• Deferred Revenue
• EBITDA
• Gross Margin
• Accrued Revenue
• Call Option
• Capital Expenditure
• Operating Leverage
• Operating Margin
• OpEx
• P&L
• Pro Forma
• Profit Margin
• Revenue Recognition
• Variable Cost