Net Revenue Economics Definition

The amount of money received from selling goods or services after all costs have been paid.

Net revenue economics definition. Government revenue is the means for government expenditure. Net revenue is defined as a company s sales revenue minus discounts and returns. Average revenue ar price per unit total revenue output. A common term for profit as the difference between total revenue and total cost.

When used in the real world of business wheeling and dealing this notion of net revenue general refers to accounting profit rather than economic profit. Net means free from all deductions and revenue refers to the income generated by organisation. To calculate net revenue first add all of the expenses listed on your income statement such as materials fees rent. Updated september 30 2020.

Net revenue définition signification ce qu est net revenue. What is net revenue. In the uk net profit may be expressed before or after deduction of corporation tax see profit profit and loss account. These are current income receipts of the government from all sources.

These are proceeds of taxes interest and dividend on government investment cess and other receipts for services rendered by the government. It is the top line or gross income figure from which costs are. Net revenue is the sales of a company from which returns discounts and other items are subtracted from. Net profit the difference between a firm s sales revenue and all costs in accounting terms net profit is the difference between gross profit and the costs involved in running a firm including depreciation costs and interest charges.

Term net revenue definition. Total revenue tr price per unit x quantity. A net sometimes written nett value is the resultant amount after accounting for the sum or difference of two or more variables. The term net revenue also known as net income can be found at the bottom of every income statement.

In accounting net refers to adjustments made to the original and therefore it can be calculated after adjusting gross revenue with the discounts returned products or any other direct selling expenses. Marginal revenue mr the change in revenue from selling one extra unit of output. In economics it is frequently used to imply the remaining value after accounting for a specific commonly understood deduction in these cases it is contrasted with the term gross which refers to the pre deduction value for example net income is the total income. What is the meaning definition of net revenue in the hospitality industry.