> Cost of goods sold is always deducted before reporting revenue According to whom? Did you mean "Gross income", not "revenue" ? https://www.investopedia.com

> Cost of goods sold is always deducted before reporting revenue According to whom? Did you mean "Gross income", not "revenue" ? https://www.investopedia.com/terms/c/cogs.asp https://www.investopedia.com/terms/c/cogs.asp > COGS is deducted from revenues (sales) in order to calculate gross profit and gross margin. Higher COGS results in lower margins. > Amazon https://www.wsj.com/market-data/quotes/AMZN/financials/annual/income-statement https://www.wsj.com/market-data/quotes/AMZN/financials/annua... In $Billons: Sales/Revenue +469 Top line COGS incl. D&A -272 Reductions Gross Income =197 SG&A Expense -172 (leading to $25-$50B bottom line income depending on which reductions you care about)