What financial metric reflects the income generated from sales?

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Revenue is the financial metric that specifically reflects the income generated from sales. It represents the total amount of money received by a company for its goods or services before any expenses are deducted. This figure is crucial for understanding the overall business performance, as it indicates the level of sales activity and market demand for the company’s offerings.

In contrast, cost of goods sold refers to the direct costs attributable to the production of goods sold by a company, which does not provide a clear picture of overall income. Net profit, while a key indicator of financial success, is calculated after deducting all expenses, taxes, and costs from revenue, making it a measure of profitability rather than direct sales income. Operating expenses encompass the costs required for running daily operations but do not directly relate to sales income either. Thus, revenue stands out as the best metric to represent income generated from sales.

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