Annual turnover is the percentage of change within a year, used to describe changes in employee force, investment portfolios, mutual funds, and exchange-traded funds. Low employee turnover is preferable, while high investment turnover can be positive if it improves portfolio value and diversity. Annual turnover is a term used to describe the degree of change […]
Revenue and turnover are separate accounting concepts, but are connected. Accounting ratios, such as inventory turnover and sales turnover, can help a company determine how much money they go through to generate specific sales revenue. The receivables turnover ratio can also play a role in a company’s revenue-to-turnover ratio. It is important to compare ratios […]
The Internal Revenue Code of 1986 governs tax laws in the US and covers almost all types of monetary transactions. It was created to modernize the tax system and has been modified every year since. The code is incredibly long and complicated, leading to criticism from some who say it is almost impossible to understand. […]
Net turnover is the net value of combined income over a given period of time or the “turnover” of an asset or other item valued over the same period. It is the net profit before VAT and post-trade discounts, and can also refer to services or inventory for a business. The word “net” distinguishes it […]
Revenue management, also known as creative accounting or earnings management, presents financial information in a positive light by minimizing negative elements. It focuses on telling isolated facts while omitting other data to misrepresent the true financial state of a company. This practice has come under closer scrutiny from investors and regulatory agencies, leading to refined […]
Mobile advertising revenue is generated through marketing campaigns targeting mobile devices. To be effective, ads must be structured to appeal to mobile users and targeted to specific consumer groups. The cost of advertising design and distribution must also be justified by the revenue generated. Mobile advertising revenue is a form of revenue generation that is […]
Marginal cost and revenue are used to determine the effects of producing one more unit. Firms aim for a production equilibrium where these are equal to maximize profit. Imbalances result in inefficiencies and economies of scale, and long-term calculations exclude fixed costs. Excessive production can lead to high costs without an increase in demand. Marginal […]
Marginal revenue is the additional revenue gained from producing one more unit of a product, and is related to marginal cost. Firms aim to produce up to the point where marginal cost equals marginal revenue. In a competitive market, marginal revenue decreases as output increases, but in a monopoly, the firm’s marginal revenue equals marginal […]
Online advertising revenue can be affected by the economy, market conditions, perception of the company or product, suitability of the advertising medium, design of the ad, and its position on the page. The strength of the market and the suitability of the advertising medium are also important factors. There are several factors that can affect […]
Stock turnover measures how many times a company sells through its inventory, and can be calculated by dividing sales by inventory or cost of goods sold by average inventory. Accounting ratios can evaluate the efficient use of a company’s assets. Companies use inventory turnover reports to improve revenue and reduce costs. Stock turnover represents how […]
Extraordinary income is non-recurring income resulting from unusual circumstances unlikely to repeat, such as asset sales or insurance deals. It requires special tax treatment and must be declared separately. Publicly traded companies must also disclose it in annual reports. Extraordinary losses, such as those from natural disasters, can also be declared. Companies may need to […]
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