Difference Between Sales And Revenue
The main dissimilarities or difference between sales and revenue can be pointed out as follows:
1. Introduction
Sales: Amount of money earned by selling products a company during a particular period
Revenue: Total amount of money generated by a business firm by selling products and other financial activities.
2. Determination
Sales: It can be determined by multiplying total sales (units of products) with selling price per unit.
Revenue: It can be determined by adding total sales amount and other forms of income generated by a firm.
3. Indicates
Sales: It indicates the amount received from customers
Revenue: It indicates the total amount of income
4. Part
Sales: It is a part or portion of revenue
Revenue: It is a sum total of income
Also Read:
Also Read:
5. Representation
Sales: It represents the value of goods and services
Revenue: It represents entire source of income such as dividend, royalty, return on investment etc.
6. Support
Sales: It supports revenue
Revenue: It does not support sales
Sales Vs Revenue (Comparison Chart)
I hope this post is helpful to understand the difference between sales and revenue and to make comparison between them.
Sales Vs Revenue (Comparison Chart)
Basis For Difference
|
Sales
|
Revenue
|
Introduction
|
Money earned by a firm by selling its products or services in a certain period
|
Total money generated by a firm by selling and other activities
|
Determination
|
(Total units sold) x (selling price per unit)
|
Total sales + other income
|
Indicates
|
Money received from customer
|
Total income
|
Part Of Or Not
|
Part of revenue
|
Total sum
|
Represents
|
Value of products
|
Entire source of income
|
Support Each Other ?
|
Supports revenue
|
Does not support sales
|
I hope this post is helpful to understand the difference between sales and revenue and to make comparison between them.
