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Finance & Account (Types of costs (Fixed costs (Remained fixed no…
Finance & Account
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Revenue
• Not the same as cash flow unless all goods have been sold for cash
• Recorded on a firm’s account
• Not the same as profit
• Costs of operating subtracted from total revenue to obtain profit figure
• Selling of product is the revenue earned
• Calculated by multiplying the quantity of products sold by the selling price
• May develop a range of trading activities, results in revenue streams
Benefit
• Higher total revenue
• Form of diversification, so other incomes could be used
Drawbacks
• Each activity needs to be managed & controlled
• Business losing focus
• Accounts need to be separated