How do cost of revenue and SG&A compare (across industries)?
For cost of revenue, one definition is "the cost of manufacturing and delivering a product or service".
Assuming my product is beer, my cost of revenue would be cost of water, barley, wheat etc, correct?
But that's very incomplete. I mean, to generate revenue from water and barley I needed: - all the brewery equipment - possibly financing the above - sell the product to the customer
But from what I understand, the cost of sales (and marketing etc) of my product is only included in operating expenses (under SG&A) and my financial expenses in continous operations.
So if anything, the name "cost of revenue" seems to be misleading.
Then as we start comparing companies and industries, it seems not everybody is using the same standards. For example, Oracle has only 20% of their cost presented as "cost of revenue" while IBM has about 50%. Without really understanding what's in there, the numbers seems incomparable. Then what if we'd compare say automotive to IT... does it have any sense at all?