# Revenue is cost plus profit #permanentnote ## Source - [[training - Strategic cost management]] ## Keywords (topics and howto) - [[topic - supply chain]] - [[how to be a better advisor]] - [[how to be a better leader]] ## Relevant notes ## Notes - Revenue is cost + profit - Usually in P&L document you get that revenue - cost = profit. Yet simply moving cost on the other side of the equation offers a new view it gets obvious that reducing cost will increase profit. And that reduction in cost is the work of procurement. - 70% of costs of a company are external costs that procurment manages.