Concept of Revenue


The money income which a producer gets from the sale of his product is known as revenue of the firm. It is also called sale proceeds of the firm.

Revenue of a firm are its money receipts consequent upon the sale of its product.

The concept of revenue should not be confused with the concept of profit. Profit of a firm is estimated as the difference between revenue and cost related to the production of a commodity (Profit = Revenue ? Cost).