The formula for the cost of revenue is ... This figure is required because it is an integral part of calculating the cost of goods sold. Last, companies need to be mindful of the "other" category.

The COGS Margin (Cost of Goods Sold Margin) is a financial metric that represents the percentage of revenue consumed by the cost of producing goods or services. It highlights the direct expenses ...

From there, most of the items listed on the income statement relate to expenses, such as the cost of goods sold—namely expenses for materials—tied to the production and sale of goods and services.