Cost of Good Sold is the variable cost most directly associated with bringing in the revenue. So the raw materials for making a physical product, or the salarie

Cost of Good Sold is the variable cost most directly associated with bringing in the revenue. So the raw materials for making a physical product, or the salaries paid to service workers who are billed out hourly. Anything that is strictly mandatory to create the product or service. Cost of Revenue goes a step further, and includes the next layer of costs that are necessary to cause sales to happen for a given product/service line in a reporting period. That includes things like sales and marketing, and distribution. Basically anything that would cause the revenue to stop coming in fairly immediately if it wasn't done. Neither includes R&D to create the product/service in the first place, or general overhead.