Revenues &margins

can u please explain these two terms & differentiate them

1 Answer(s)


The money a customer pays you when you sell a product or service is called Revenue.

The money you have left over after paying your expenses are called margins.

For example, if you run a pizza company and your customer pays Rs.100 for a pizza thats your revenue. From that Rs.100 revenue you have to pay Rs. 20 for the ingredients and you have Rs. 80 left - that is called your gross margins.