Revenue is the income that a business receives, total revenue would be formulated by price times quantity
However business occurs expenses along with the sales, therefore to calculate the net effect of the income that business receives, we use profit which is essentially the revenue minus expenses/costs incurred
Revenue is the total income of an entity from its products. It does not take into account expenses and cash outflow. Whereas Profit is the revenue or income over aand above the cost involved in the production. Profit is that money that a firm retains after all expenses have been paid and accounts have been settled.
Symbolically,
Total Revenue = Price x Quantity
Profit = Total Revenue - Total Cost.
Difference between revenue from sales and cost of goods sold is called "Gross profit".
Revenue is the profit made from an activity, while cost is the price something is.
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
The difference between an asset's ability to generate revenue and its ability to generate profit is generating revenue refers to the asset producing a cash flow that is linked directly to the asset. If the asset was not there, then no money would be made. Assets that generate profit do not produce cash directly, but influences consumer and competitor behavior with the intention of producing more revenues.
For a normal business it is Profit or Loss (depending upon which is greater) For a non-profit organisation (eg a Charity) it is Surplus or Deficit.
difference between revenue and costs
Difference between revenue from sales and cost of goods sold is called "Gross profit".
profit or loss
Profit is revenue minus costs. In merchandising, you have to pay for the items you sell, and you charge a higher amount to your customers. The difference between what you pay for them (cost) and what you get for selling them (revenue)_ is your profit. ■
Revenue is the profit made from an activity, while cost is the price something is.
In economics, marginal profit is the difference between the marginal revenue and the marginal cost of producing an additional unit of output.
Sales is a revenue not an expense or asset while difference between sales and expense is profit which is liability for business.
Revenue is all the money a business brings in. Net income is revenue minus all the expenses of the business. Net income is profit.
Difference between revenue received from sale of an output & the opportunity cost of inputs used. (EVA)
The difference between an asset's ability to generate revenue and its ability to generate profit is generating revenue refers to the asset producing a cash flow that is linked directly to the asset. If the asset was not there, then no money would be made. Assets that generate profit do not produce cash directly, but influences consumer and competitor behavior with the intention of producing more revenues.
Gross Margin = (Gross Profit/Sales)*100 Gross Profit = Revenue - Cost of Sales Net Profit = Revenue - Expenses Or in words, the Gross Margin is an expression of the Gross Profit as a percentage of Sales, where the Gross Profit is Sales minus the Cost of Sales. The Net Profit, on the other hand, is Revenue minus ALL Expenses (including cost of sales).
maximizing the difference between total revenue and total cost