Initially the truck’s cost will be recorded in the asset account Delivery Truck. However, the truck’s cost will become Depreciation Expense as the truck is “used up” in the company’s revenue-generating activities. Related Questions How do I determine the cost of missing inventory? What...
Cost-benefit analysisCost-benefit analysis (CBA) takes into consideration benefits and costs in money values for a project or a decision or compare several alternatives to choose the best one. NPV is an example of CBA for assessing the suitability of a project or selecting...
A cost typically refers to the price paid to acquire an asset, while an expense is an ongoing expense, such as an employee's salary or rent on a retail space. Further, a cost is often a one-time outlay for something that provides future benefits, whereas an expense is a recurring payme...
Revenue is the amount earned from a company’s main operating activities, such as a retailer selling merchandise or a law firm providing legal services. Definition of Gain In accounting, a gain is the result of a peripheral activity, such as a retailer selling one of its old delivery trucks...
Explain the difference between incremental and zero-based budgeting methods. How are the statistic, expense, revenue and operating budgets related? Distinguish between the cash budget and the capital budget. Define and explain marginal cost of capital. What is the d...
The following are answers to some of the most common questions investors ask about revenue. What Is the Difference Between Revenue and Sales? Revenue represents sales from goods and services, while sales represent money coming from the sale of goods only. Investors may reference either term for ...
What is the difference between revenue and sales? Revenue and sale: Revenue is the income of a business from the operation and other income. Sales are proceeds received from selling the goods and services. The sale is the multiplying the number of goods sold by unit price. ...
In other words, for every 1,000 impressions, the publisher or app developer will generate $1.75 in revenue. On the other hand, CPM is a price and reach metric employed to estimate the cost of a campaign and its reach within an advertiser’s budget. ...
Cost Centre Cost Centres emphasize minimizing and monitoring expenses. The maintenance division is a crucial Cost Centre in manufacturing firms. 5 Profit Centre Profit Centres have control and accountability over revenue and cost. The regional office, as a Profit Centre, was evaluated based on its ...
It costs money to make and sell an additional unit. As long as marginal revenue is above or equal tomarginal cost, a company is making a profit. Once marginal cost exceeds marginal revenue, it makes no sense for a company to produce or sell more units of its products or services...