What is Sales Revenue?
Sales Revenue
Money earned by selling goods.
What it means
Revenue is the quantity exported to customers multiplied by the unit sales price. We catch it when the goods are shipped out, not when we receive the order.
You have to subtract the cost from sales to get the remaining money. Just because sales are big doesn't mean there's a lot left over.
At the pen factory
In November, we shipped 900 pens worth of ballpoint pens. Since one pen costs 500 won, sales are 450,000 won.
Why it matters
It shows the results of the factory's work in one number.