The difference between revenue and cost of goods sold is called: gross profit
owner's equity
cost of goods sold
net income before taxes

gross profit

Explanation:

Revenue is the income gained through the sales of goods and services to customers. It is the money received from customers when they buy from a business.

Costs of goods sold are the expenses incurred in producing goods meant for sales. It is composed of the direct cost of the manufacturing process. Costs of goods sold include direct materials, direct labor costs, and direct overhead costs.

Gross profit is equal to sales minus direct costs.  Revenue is the same as sales, and direct costs are similar to the costs of goods sold. Therefore, revenue minus costs of goods sold is equal to gross profit.

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