What does revenue not include?

Revenue represents the total income generated by a business from its primary operations, which typically includes sales from products sold and money generated from services rendered. It also encompasses any income generated from secondary sources, such as investment income, which can provide additional revenue outside of core business activities.

Costs associated with producing goods, however, are classified as expenses rather than revenue. Expenses reduce the overall profitability of a business but are not part of the revenue figure itself. Revenue calculations focus solely on the income side of a company's financials, not the costs incurred in generating that income. Thus, selecting costs as something that revenue does not include reflects a clear understanding of financial reporting and the distinctions between income and expenses in business accounting.