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When is maximizing revenue the same as maximizing profit?
It is same when your revenue increases and at the same time it manages to maintain its profit %. Assuming a company has a turnover of 100 crores and has a running expenditure of 75 crores then profit is 25 crores which is 25%. If the company takes steps to increase its turnover and manages to increase the total turnover the next year to 200 crores and manages to keep its expenditure to 150 crores, this implies that the profit this time around was the same 25% and hence profit maximization happened the same as revenue maximization. But it is seldom the case. In many cases when a company strives to increase either, the other takes a hit.
Total revenue and total cost curves?
total cost= total revenue, it is the same thing in different name.
Why total revenue equal to total cost?
No total revenue is total finance in, you need to take from this the running costs of the business to get the gross profit (net sales minus the cost of goods and services sold).
Is total sales and the total revenue same thing?
Not always. There are sources of revenue other than sales. For example, a company with considerable cash assets may have some revenue from interest.
What is it called when price and total revenue move in the same direction?
When price and total revenue move in the same direction, it is referred to as inelastic demand. In this scenario, an increase in price leads to an increase in total revenue, or a decrease in price results in a decrease in total revenue. This typically occurs when the percentage change in quantity demanded is less than the percentage change in price.
total asset turnover?
total asset turnover shows how much revenue is contributed by assets of a company. a higher ratio implies higher revenue earned. it is calculated as follows:Total asset turnover = Revenue / Average total assetsAverage total assets = (Opening total assets + Closing total assets) / 2
The difference between turnover and revenue?
In U.K. "turnover" is what U.S. calls "revenue"
What is the difference between revenue and turnover?
Revenue is the amount of money that comes in from sales, so "sales" and "revenue" are the same. Turnover is the quantity of stock sold over an indicated period, expressed either in monetary value or number of units.
What is a revenue turnover?
Revenue turnover refers to the total amount of sales generated by a business within a specific period, typically expressed as a ratio to measure efficiency. It indicates how effectively a company utilizes its assets to produce revenue, often calculated by dividing total revenue by average total assets. A higher turnover ratio suggests better performance in converting sales into revenue, while a lower ratio may indicate inefficiencies. This metric is crucial for assessing a company's operational effectiveness and financial health.
What is asset turnover?
Asset Turnover is a financial ratio that measures the efficiency of a company's use of its assets in generating revenue or income for the company. A higher asset turnover ratio implies that the company is operating efficiently and is able to generate solid revenue income using the assets at their disposal.Formula:Asset Turnover = Sales / Average Total Assets
When is maximizing revenue the same as maximizing profit?
It is same when your revenue increases and at the same time it manages to maintain its profit %. Assuming a company has a turnover of 100 crores and has a running expenditure of 75 crores then profit is 25 crores which is 25%. If the company takes steps to increase its turnover and manages to increase the total turnover the next year to 200 crores and manages to keep its expenditure to 150 crores, this implies that the profit this time around was the same 25% and hence profit maximization happened the same as revenue maximization. But it is seldom the case. In many cases when a company strives to increase either, the other takes a hit.
Is turnover the same as profit?
No !! Turnover is the amount of money that is used for the business to trade, profit is the amount of money that is left after the costs of the business have been subtracted from the income from the business. turnover in general sense means the total revenue derieved by an enterprise from its primary business . however different rules and provisions of various laws and acts define turnover differently . There cannot be any stable definition for turnover .
What is turnover in business?
Annual revenue.
How do you calculate total revenue?
To calculate total revenue you simply multiply the quantity by the price. Total revenue includes expenses; therefore, total revenue isn't the same as profit.
Total revenue and total cost curves?
total cost= total revenue, it is the same thing in different name.
Does turnover include GST?
Turnover typically refers to the total revenue generated by a business from its operations, but whether it includes Goods and Services Tax (GST) can vary by jurisdiction. In many cases, businesses report turnover excluding GST, as GST is a tax collected on behalf of the government and not a revenue item. However, it's important to check local accounting standards and regulations to determine the specific treatment of GST in turnover calculations.
Is total sales and total revenue the same thing?
yes
