What is Revenue?
Revenue is the amount received by an organisation from the sale of a given quantity of a commodity in the market. Simply put, is the amount of money received by a producer for the sale proceeds. For example, if a firm gets ₹20,000 by selling 100 tables, then ₹20,000 will be the revenue of the firm.
Revenue is an essential concept in the analysis of an economy. Sales level has a direct impact on revenue. It means that if sales increase, then revenue will also increase. Revenue is not the same as Profit. Revenue is the sale proceeds; however, Profit is the excess of revenue over costs.
Profit = Revenue – Costs
There are three important terms in Revenue; viz., Total Revenue, Average Revenue, and Marginal Revenue.
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