What term is used to describe the total cost of goods and services?

The term that accurately describes the total cost of goods and services is "Expense." In a business context, expenses represent the costs incurred in the process of generating revenue, encompassing all expenditures related to purchasing goods, acquiring services, and covering operational costs.

Understanding that expenses include everything a company pays out to get its products ready for sale or to provide services helps clarify this concept. Itemizing these costs is crucial for maintaining accurate financial records and analyzing a company's profitability. In contrast to terms like revenue — which signifies the income earned by a business from its activities — or markup, which refers to the difference between the cost of a product and its selling price, "Expense" focuses specifically on the costs associated with running the business and providing goods or services.