Glossary entry (derived from question below)
English term or phrase:
revenue split between products and services
English answer:
separating revenue between the sale of products and services
Added to glossary by
acetran
Apr 30, 2014 00:12
10 yrs ago
9 viewers *
English term
revenue split between products and services
English
Bus/Financial
Finance (general)
Hello,
I would like to know what does a company´s revenue split between products and services means.
'
Is it the percentage of what a company earn from the sale of products and the provision of services? Or is it what a company invests in products and services?
Your comments will be much appreciated.
Kind Rgds,
I would like to know what does a company´s revenue split between products and services means.
'
Is it the percentage of what a company earn from the sale of products and the provision of services? Or is it what a company invests in products and services?
Your comments will be much appreciated.
Kind Rgds,
Change log
May 14, 2014 04:17: acetran Created KOG entry
Responses
+3
9 hrs
Selected
separating revenue between the sale of products and services
It is applicable for a company that sells products as well as provides services.
If a hotel has a bakery attached to it, then the sale from the counter of bakery items would be revenue from products, whereas revenue from occupation of rooms would be revenue from services.
If a software firm makes and sells a software, it would be revenue from products. If the same company manages the implementation of SAP in some organization, it would be revenue from services.
Many companies want to keep these two types of revenue as different. There could be various reasons for this:
1. Different taxation for products and services. Eg. 5% on bakery products and 14% on room rent.
2. Aligning the strategy according to the mission of the company. The company ma y want a particular product-service revenue mix as per its mission and objectives.
3. As per the needs of the accounting.
4. Different goals of different SBUs (Strategic Business Units)
If a hotel has a bakery attached to it, then the sale from the counter of bakery items would be revenue from products, whereas revenue from occupation of rooms would be revenue from services.
If a software firm makes and sells a software, it would be revenue from products. If the same company manages the implementation of SAP in some organization, it would be revenue from services.
Many companies want to keep these two types of revenue as different. There could be various reasons for this:
1. Different taxation for products and services. Eg. 5% on bakery products and 14% on room rent.
2. Aligning the strategy according to the mission of the company. The company ma y want a particular product-service revenue mix as per its mission and objectives.
3. As per the needs of the accounting.
4. Different goals of different SBUs (Strategic Business Units)
Peer comment(s):
| agree |
David Moore (X)
18 mins
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:)
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| agree |
ulzii
4 days
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:)
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| agree |
Naweed Miakhel
4 days
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:)
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4 KudoZ points awarded for this answer.
Comment: "Selected automatically based on peer agreement."
+1
6 hrs
income/revenue received from the sale of goods and services
I read it as revenue that a company receives from the sale of goods and services.
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Note added at 14 days (2014-05-14 04:07:23 GMT) Post-grading
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The question was: Is it the percentage of what a company earns from the sale of products and the provision of services? Or is it what a company invests in products and services?
The answers is: what it 'earns'
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Note added at 14 days (2014-05-14 04:07:23 GMT) Post-grading
--------------------------------------------------
The question was: Is it the percentage of what a company earns from the sale of products and the provision of services? Or is it what a company invests in products and services?
The answers is: what it 'earns'
Peer comment(s):
| neutral |
dkfmmuc
: Sorry for the neutral comment. There is not enough context to suggest an answer. FUrthermore revenue split hints to a visualization of the percentages for each revenue category.
44 mins
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Yes. The context is not particularly helpful. Thank you for the comment
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| agree |
Charlesp
4 hrs
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Thank you
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Discussion