3.3.2—Revenue
- Syllabus
- First assessment 2024
- Objective
- 3.3.2
- Level
- SL
Revenue is value generated, not the same as profit
Sales revenue is quantity sold multiplied by selling price over a period. Revenue streams are other recurring or occasional inflows such as subscriptions, donations, dividends, sponsorship or advertising.
A business with several products should calculate each quantity–price stream and then add them. Revenue is the top-line inflow; profit still depends on the costs required to earn it and on the timing of cash collection.
If 39,264 packs sell at £8.75 and 4,275 tonnes at £123.95, calculate each stream separately and add the results. A subscription service may have predictable revenue, while donations or advertising depend on different customers and conditions.
Higher revenue does not prove higher profit or liquidity. Check units, price, volume, discounts, timing and the costs attached to the activity before judging performance.