What Does Revenue Less Expenses Mean
4 8 21 contents1 revenue definition 2 revenue examples 3 operating revenue definition 4 operating revenue examples 5 non operating revenue definition 6 non operating revenue examples 7 expenses definition 8 expenses examples.
What does revenue less expenses mean. However this does not change the importance of this calculation. Join yahoo answers and get 100 points today. Net sales gross sales customer discounts returns allowances gross profit net sales cost of goods sold operating profit gross profit total operating expenses net profit operating profit taxes interest net profi. Paying less on advertising reduces costs but also lowers the.
There will be an increase in revenue. If a company reduces a product s price what does this mean for their revenue. In financial accounting an inflow of money usually from sales or services thru business activities is called as revenue. Profit is the balance when you pay all of the expenses the remainder that is left is the profit.
Ask question 100. Often operating expenses receive the most scrutiny from a company as these types of costs may be less fixed than their non operating expenses manufacturing costs and capital expenditures. What does an increase in operating expenses mean. A revenue deficit occurs when the net income generated revenues less expenditures falls short of the projected net income.
This happens when the actual amount of revenue. Expenses 75 of revenue 9000000 depreciation 1500000 net income 1500000. If by profit you mean revenues. Operating leverage results from what.
This is so fundamental a part of the business process that it often goes unremarked. The total expenses of a firm. Get answers by asking now. Understanding the relation between.
An expense is the cost of operations that a company incurs to generate revenue. When revenues are less than costs. Ordinary means the expense is common or. And loss is when the expenses are greater than revenue means that the revenue is less and the.