The cost of revenue is the money spent to make profit for a business. All business have to spend money to make money.
because the lower the cost the more profit the business makes profit = revenue - cost
Cost center is a non-revenue producing element of an organization where costs are separately figured and allocated and for which someone is held personally responsible. And a revenue center is distinctly identifiable place, department or unit that directly generates the revenue through sales of good or services.
Net Interest refers to the revenue that is got from the difference between cost of servicing liabilities and the revenue generated by assets that bear interest. This considered to be an excess revenue.
Profits are maximized when marginal costs equals marginal revenue because fixed costs are now spread over a larger amount of revenue. This means that total cost per unit declines and profits increase. Another way to say this is that this is the effect of scale. When marginal revenue equals marginal costs, in a growing revenue situation, you gain economies of scale and higher profits.
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).
it doesn't cost is cost revenue is revenue
cost/revenue x100%
Cost of revenue is the amount spent to sell a company's products.
(Projected revenue) - (Extended Cost) (Projected revenue) - (Extended Cost)
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Sales revenue = breakeven sales + Fixed Cost Sales revenue = 40000 + 30000 sales revenue = 70000 Prove Sales revenue = 70000 Less: V.C = 40000 Contribution Margin = 30000 Less:Fixed Cost = 30000 Profit (loss) = Nill
Cost is how much is spent revenue is the annual how much u make
Matching Cost against Revenue principles stipulate that a revenue generated must have an associated cost to it. As & when a revenue is recognized, so is the cost.
+10.46%
Profit=Total revenue - Total cost
total cost= total revenue, it is the same thing in different name.
Marginal Cost = Marginal Revenue, or the derivative of the Total Revenue, which is price x quantity.