Article of the Month : Business Costs, Revenue and Break Even Point
All businesses need to keep records of how much money they are spending and how much money they are receiving in. If they do not do this they could end up losing a lot of money and even getting into trouble with the tax authorities. This article is about three important money terms revenue, costs and break even.
Revenue is the money that comes into the business e.g. from sales, interest on savings, product licensing and rent agreements. Sales revenue is calculated by multiplying the number of sales, with the price charged for the items sold. For example if I sell ten sweets for £1.20 my revenue is £12.00. Do not confuse sales revenue with profit as revenue looks at how much money has come into the business, without taking costs into Click here to read more