why is cost of revenue important 
cost of revenue is important because it allows a company to best understand all of the costs it incurs to generate income this goes beyond just the cost of goods sold this extends to other types of expenses needed to sell and distribute a good with this knowledge companies can more strategically deploy capital as they have a better sense of what capital is needed to raise certain amounts of revenue the bottom linecost of revenue is the total cost incurred to produce and sell a good it includes the cost of goods sold in addition to all sorts of other cost sof production it also includes costs not included in production but needed to deliver or market a product all of this information is used by a company to better understand the true profit margin of a product 