BUISENESS MANAGEMENT
BUSINESS PLANNING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue
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Profit
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Either A or B
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None of the above
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Detailed explanation-1: -Is turnover the same as revenue? No, but they do often correlate. For example, businesses can earn more revenue by turning over their inventory frequently. In essence, turnover affects the efficiency of companies while revenue affects profitability.
Detailed explanation-2: -What is the definition of turnover? Also known as income or gross revenue, turnover is the total amount of sales you make over a set period. This could be weekly, monthly, quarterly or annual turnover-whatever time period you choose to measure.
Detailed explanation-3: -Turnover is the total sales made by a business in a certain period. It’s sometimes referred to as ‘gross revenue’ or ‘income’. This is different to profit, which is a measure of earnings. It’s an important measure of your business’s performance.