Thursday, April 4, 2013

ANALYSIS OF DEMAND AND PRICE EFFECT ON FIRM 'S REVENUE

1. Determinations of a sloshed?s receiptsThere argon numerous diverse opinions on identification revenue, then it is necessary to define this properly. The revenue baffles up the prime part of firm ?s yields. It is manifest not only in production of goods but excessively in service sector. They mean money, which the firms gain through change their goods and services in a particular accounting year. They make up main financial source of the firm, which uses it for paying fees, taxes, costs, and dividends and as an instrument of extended reproduction. Revenues are receipts from selling of produced goods and provided services, purchased goods and stocks, delusive assets, patents and licences, etc. The value of particular terms is recorded in profit and loss account. The revenue of produced goods or/and provided services is of capital importance. It is determined by the saturation of sale, prices of particular products, variety of products, focusing of invoicing and period of payment and other factors. The firm may fascinate the volume of sale, but to large extent it is limited by production capacity and demand. Prices are results of interaction of demand and supply. They are affected by a structure of a market, thus the firm can influence them only to some extent. only when the variety of goods lies in the firm hand so its revenue may be affected by its optimisation.

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The way of invoicing is establish by the law, thus it cannot by affected by the firm. The firm can raise its revenue by increasing of volume of sale and prices of products, change their quality and technical level, introducing new goods, improving customer services, introducing more effective advertisement and etc. These factors are subject of marketing policy, but addressing these factors is beyond the scope of this paper. The pursual analysis will...

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