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Cost & Revenue (M17C) (Revenue (Revenue streams (Fund-raising (A…

- - - - mobile telephone and internet service provider
      - payment to labour
      - machinery and vehicles
  - - - labour
      - materials
      - power consumptions
    - - The cost of the materials used to create a product is a direct cost
      - A direct cost is a price that can be completely attributed to the production of specific goods or services
  - - - have to be paid even if no output
    - - raw material costs
      - sales commissions
      - packaging
      - energy usage costs
  - - - example
        
        Rent on leased premises
        
        Bank loan
        
        market research
- - - - The benefits given to an individual or organisations usually by the government which is mostly in the form of cash payments or a tax reduction
    - - Financial supports provided by the government in a hope that the organisation will bring benefits to the society or country.
    - - The financial gifts from individuals or other organisations, usually earned by charities and non-profit organisation.
    - - A process of gathering voluntary contributions of money or other resources by requesting donations from other individuals, business, governmental agencies or etc..
    - - A form of below-the-line promotion, the sponsor provides financial supports to an organisation in return for prominent promotional display.
    - - Business that have shares in other companies will receive the payment of any declared dividends.
    - - get their income from advertiser by helping them to advertise (advertiser pay for every click or advertisement displayed)
    - - A fee charged to the customers when an alternative way of payment or other services are provided.
    - - Franchisee pay a fee to the franchisor to purchase the right to use its brand name and, logos and trademarks
      - Franchisee also pays a royalty payment based on the sales revenue of the franchised business
    - - Charges imposed on customers who use or access a good or service ,based on a formal agreement
    - - Income gain by selling merchandises (usually service providers).
    - - Payment received by a business when depositing an amount of money to other bank account or doing investments depending on the percentage of interest charged.
    - - Royalties received by the holder of patents and copyrights from others who are granted the use of their inventions and creations.
  - - - accural accounting : includes sales made on credit as revenue (as long as goods/services have been delivered to the customer). for this one, we must look at the cash flow to check whether the company collects the money customer's owe them.
        
        helps business to assess the volume of their sales.
        
        used by businesses with annual sales exceeding $5 million and has a corporation structure
        
        highly recommeded for businesses that sell on credit as it accurately matches income and expenses (when it is made/spent)
      - cash accounting : only count sales as revenue if the payment has been made
        
        good for their cash flow.
        
        appropriate for small and cash-based business/service company