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The Income/Outcome® Contextuarya visual glossary of corporate finance |
Income/Outcome Business Simulations Home
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We use "business visualization" to graphically simplify complex business concepts (and increase business acumen). To get more information on business visualization, please see "The Company Board" (our business results visualizer) and Income/Outcome (our customizable business simulation).
The following are our generic explanations of common corporate financial terminology. Actual meanings can vary wildly from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
To get more information about the authors, please see our Directory of Contributing Editors.
Calculation: Gross Sales at list price less any discounts, sales returns and allowances, but before subtracting the Cost of Sales (COS) and Operating Expense.
Revenues from the sale of goods and services which are part of the company’s regular operations.
Net Sales is the number used in Financial Statements if the line item just says ’Sales.’
What do you mean by that? The term ‘Sales’ generally refers to Net Sales. The term ‘Total Sales’ could refer to Gross Sales or Net Sales.