A term commonly substituted for revenue. However, sales are sub element of revenue. Gross sales are total customer purchases and net sales include adjustments to those purchases. Adjustments include returns, allowances and discounts.
Now that I’m done with the employee payroll series, Lessons 30-35, it is time to explain sales. There are five lessons for this section of daily operations. They are as follows: Tracking Invoices – Lesson […]
In business the best source of new business is the existing customer. Discovering the customer’s habits and characteristics allows the sales department to expand into new geographical territories with similar customer characteristics and/or modify the […]
Revenue accounts are the most fun to watch as a bookkeeper. Revenue is the lifeblood for success. Without revenue, the company is doomed to go bankrupt. After all, you are in business to sell your […]
The scholarly definition and reality are two different perspectives. The student is taught that marginal revenue equals the additional dollars generated for an additional single unit of sales. It is literally taken right down to […]
Many business owners misunderstand the use of term ‘Cost of Sales’ by restricting it to just simply ‘Cost of Goods Sold’. Basically, most business entrepreneurs and even accountants don’t realize that it has several different […]
Sales are a component of revenue. Revenue encompasses several sources of income including sales. Other sources of revenue include interest, trust monies, royalties, and fees. In effect, revenue includes all sources of income, realized and […]