December 2017
Intermediate to advanced
390 pages
7h 51m
English
Content preview from Measuring MarketingBecome an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
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Chapter 1 Revenue
Measurement Need
Companies need to measure the money received from the production and sale of products and services during a specified period of time.
Solutioni
Revenue is the total income from the sale of products and services, as represented by the following:
Where
R = revenue
P = price of products or services
Qt = quantity in time period t
Price refers to the actual price received for all products and services sold, not a budgeted or projected price. In a product-based business, quantity is simply the number of units sold. In a service-based business, revenue may be calculated by multiplying the hours worked by the billable hourly rate. Or, revenue may be calculated based on an agreed fixed fee for a contracted ...
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