Sales

Definition

Sales—or sales revenue—equals the dollar amount a company makes during the period under review.

Gross sales are the sum of all sales during a time period.

Sales volume equals the number of units a business sells during a given period, such as a year or fiscal quarter.

The concepts of sales and sales volume interconnect because total sales equal sales volume multiplied by the unit price. For example, if a company sold 1 million units of a product at $2 apiece, the corporate sales volume would be 1 million, yielding periodic sales of $2 million (1 million multiplied by $2). [1]

Break-even point is the sales volume at which total revenues are equal to total costs. [2]

An approval sale is a sale subject to later approval or selection, the customer having unlimited return privileges. [2]

Backdoor selling is defined as: [2]

  1. Sales to ultimate consumers by wholesalers who hold themselves out to be sellers only to retailers.
  2. A salesperson’s practice of avoiding a purchasing agent by visiting departments in plants to obtain orders without authorization from the purchasing agent.

 

References

  1. Codjia, Marquis. Difference Between the Sales & Sales VolumeHouston Chronicle.
  2. American Marketing Association, AMA Dictionary

Comments are closed.