Business

Question

Revenue or income, minus departmental expenses and undistributed expenses equals:

2 Answer

  • Departmental income can be considered the contribution of revenues to profits because it is computed after deducting the direct costs of providing the service or product. Subtracting all of the undistributed operating expenses from total revenues results in gross operating profit per available room (GOPPAR).
  • Revenues or income minus departmental expenses and undistributed expenses equals gross profits.

    What do you mean by revenues?

    Revenue refers to the money that is generated from normal business operations.

    Gross profits refer to the total revenue minus the departmental expenses that are related to the production of goods for sale.

    Revenue or income minus departmental expenses and undistributed expenses is equal to the gross profits.

    Learn more about Revenues here:

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