High Revenue Vs High Profit

Profit can be used to pay higher wages to owners and workers.

High revenue vs high profit. Revenue never accounts for expenses and costs. Revenue profit and income are three terms which sound same to a layman although in business terminology there is a huge difference between them. Profit works as a tool in the calculation of tax of the enterprise. Earnings are the bottom line on a company s income statement and profits.

Now naturally there are a lot of nuances involved here but generally speaking here are the characteristics of the two and what they mean 1. While revenue includes the gross earning from primary operations without any deductions profit is the resultant income after accounting for expenses expenditures taxes and additional income and costs in the revenue. That s what i would pick if forced to choose between the two. It simply describes total money earned by the business.

In the simplest terms profit is the result of your revenue minus your expenses. Profit below are the figures and the income statement portion for j c. So if you had a single contract to perform a service for a customer and the contract was worth 50 000 then your revenue for the project was 50 000. Classical economic theory suggests firms will seek to maximise profits.

What are the pros and cons to the employer worker and customer. The benefits of maximising profit include. In general profit is the reward for the risk taken in the business by the company. Profit is the net amount of money left after deducting all costs expenses and taxes from the revenue.

Revenue is the total income earned by a company for selling its goods and services. High revenue but low profit margin. The numbers were reported on their 10k annual statement closing on feb.