Costs and revenues: what are they?

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Incurring costs to purchase production factors and obtaining revenues from the provision of services or the sale of products determine the economic management aspect of a company, even in the case of franchising .

Obviously, the above aspect is preceded by the movement of a financial nature, that is, by the costs that are measured by the outgoings of money and by the revenues that measure the incomings of money. Let's see in detail what costs and revenues are so that we can better understand how they should be used in the planning of business growth .


business costs

Costs are charges incurred by the company for the purchase of all the lawyer data essential factors to carry out its activity. Revenues, on the other hand , are the fees obtained by selling goods, including various types of goods, finished products, machinery, etc.

Returning to costs, when production factors are purchased, which will then be used for multiple financial years, such as machinery, systems, buildings, land and other, these give rise to the so-called multi-year costs.