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Cost of revenue

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Anonymous

11y ago
Updated: 4/28/2022

The cost of revenue is the money spent to make profit for a business. All business have to spend money to make money.

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Wiki User

11y ago

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Why is cost important in business?

because the lower the cost the more profit the business makes profit = revenue - cost


What is the difference between cost center and revenue center?

Cost center is a non-revenue producing element of an organization where costs are separately figured and allocated and for which someone is held personally responsible. And a revenue center is distinctly identifiable place, department or unit that directly generates the revenue through sales of good or services.


What is net Interest?

Net Interest refers to the revenue that is got from the difference between cost of servicing liabilities and the revenue generated by assets that bear interest. This considered to be an excess revenue.


Why are profit maximize when marginal revenue is equal to marginal cost?

Profits are maximized when marginal costs equals marginal revenue because fixed costs are now spread over a larger amount of revenue. This means that total cost per unit declines and profits increase. Another way to say this is that this is the effect of scale. When marginal revenue equals marginal costs, in a growing revenue situation, you gain economies of scale and higher profits.


What is the difference between gross margin and net profit?

Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Revenue - Cost of Sales Net Profit = Revenue - Expenses Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales. The Net Profit, on the other hand, is Revenue minus ALL Expenses (including cost of sales).

Related Questions

Why does average cost include profit?

it doesn't cost is cost revenue is revenue


How do you find percent of revenue for cost?

cost/revenue x100%


What is cost of revenue?

Cost of revenue is the amount spent to sell a company's products.


How do you find projected profit?

(Projected revenue) - (Extended Cost) (Projected revenue) - (Extended Cost)


What is the difference between Cost of revenue and revenue?

m mnmk


What is the sales revenue if variable cost is 40000 and fixed cost is 30000 and break sale revenue is 40000?

Sales revenue = breakeven sales + Fixed Cost Sales revenue = 40000 + 30000 sales revenue = 70000 Prove Sales revenue = 70000 Less: V.C = 40000 Contribution Margin = 30000 Less:Fixed Cost = 30000 Profit (loss) = Nill


What deference between cost and revenue?

Cost is how much is spent revenue is the annual how much u make


What is the rationale for recognizing costs as expenses at the time of product sale?

Matching Cost against Revenue principles stipulate that a revenue generated must have an associated cost to it. As & when a revenue is recognized, so is the cost.


Business CAT cost of revenue in 2001 is 5266 the cost of revenue in 2002 is 5818 what is the percent increase?

+10.46%


How do you calculate marginal revenue cost by math and graphically and marginal in general?

Profit=Total revenue - Total cost


Total revenue and total cost curves?

total cost= total revenue, it is the same thing in different name.


What is the formula to find the marginal cost?

Marginal Cost = Marginal Revenue, or the derivative of the Total Revenue, which is price x quantity.