Which term refers to the money collected from the sale of goods and services, calculated by multiplying unit price by quantity sold?

Which term refers to the money collected from the sale of goods and services, calculated by multiplying unit price by quantity sold?

• A. Cost
• B. Revenue
• C. Average Cost
• D. Profit

Answer: (B)

Revenue is the money a business earns from selling goods and services. It is calculated by multiplying the unit price by the quantity sold, giving the total sales before any costs are deducted. This is the top-line figure on financial statements. It differs from cost (money spent to produce or run the business) and from profit (revenue minus costs). Average cost is the total cost divided by quantity, i.e., the cost per unit.

Revenue is the money a business earns from selling goods and services. It is calculated by multiplying the unit price by the quantity sold, giving the total sales before any costs are deducted. This is the top-line figure on financial statements. It differs from cost (money spent to produce or run the business) and from profit (revenue minus costs). Average cost is the total cost divided by quantity, i.e., the cost per unit.