Total Product Revenue

Posted in Operations and Supply Chain Terms, Total Reads: 2342

Definition: Total Product Revenue

Total Product Revenue is the total value of sales made to client and the transfer valuation of shipments including discount, allowances and refund, if any. It comprises of revenue generated from product sold or services provided to the company. It also includes installation services and leases given to other business.

It excludes after sales revenue, royalties, maintenance revenue and spare part revenues.

Total Product Revenue = Price per unit X Quantity Sold

i.e. TR(Q) = P(Q) X Q

Difference between Total Revenue and Total Product Revenue

• Total revenue includes taxes and shipping charges.

• Whereas Product revenue excludes these two components.

• Hence, Total Revenue > Product Revenue.


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