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Seraphic_Sixaxis on 22 January 2009
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Bodhesatva said:
Seraphic_Sixaxis said:
I dont wanna sound like a noob, but what does revenue mean? >_>

 

It's fine. An even more elementary explanation:

 

Let's imagine I make computer monitors. In total, I sell 10 computer monitors for 100 dollars each. That's a total revenue of 1000 dollars. That's the total amount of money I brought in.

However, that isn't 1000 dollars in profit, as you need to consider that it cost me money to buy the parts to put the monitor together (the glass for the screen, the individual transistors, etc) as well as pay a person to assemble them for me, along with some other variable costs. Let's say those costs total 800 dollars.

In this situation, I had 1000 dollars in revenue, 800 dollars in production costs, and 200 dollars in operating income. Then, if you take out the taxes and interest on debt, which may be 100 dollars, you have your "net income" of 100 dollars. "Net Income" is what we typically refer to as "profit," which is

All the money we made (Revenue) - all the money we spent to make the stuff we sold (production costs) - all the money we have to give in taxes = our profit (Net Income). Hope that helps!

Ahh, i see. thanks dude! :)

So then good revenue = good news then mm, nice! :D