To model profit, analysts frequently need to consider at a more aggregated level than revenue, but this still requires some scrutiny and thought. When considering how revenue and costs are related, will grow directly with sales volume, while do not grow directly with sales volume. Direct costs, frequently labeled " " or "Cost of Sales," drive the gross margin because revenue minus direct costs equals gross profit. If a low-margin product is expected to grow faster than a high-margin product, the analyst should forecast of profit margin overall. Indirect costs, such as expenses, do not have a direct relationship with the revenue of a company but are still part of the costs which drive