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Understanding turnover and know what turnover is

Do you know what turnover actually is and what is the difference between turnover and profit or profit? film the business world or a term that is often said or associated with the level of success in selling goods or income from a company.

 However, both of them have a close relationship but the basis for this writing has a different meaning. 

What is turnover? 

In general, the meaning of turnover is the total amount of money obtained from the sale of a product in a specified or certain period. However, this money is still included in the gross income because the money has not been deducted from the cost of goods sold or it can be said that the price per picis.coupled with the operational costs of electricity and water and many more. 

Then what is profit or profit? 

profit is the net income that is obtained from a company selling products in a certain period which has been deducted from the cost of goods sold or COGS and has also been deducted from operating costs, in other words, profit is net income. 

The explanatory material as well as the meaning of the two are upright to explain the difference in brief, turnover is profit, but it is included in the gross income that has not been reduced by the COGS and the cost of production costs.

Benefits and goals of business turnover 

after we are able to know what is turnover and profit from the above understanding, maybe friends still raise the question which is important between profit and turnover? before answering the questions that are in your friends' brains, it's good to know that each type of business has its own priorities and targets depending on the goals.

1. Turnover-oriented business type 

in generating a large turnover it means that sales are also large so that the rotation of goods is also fast. this type of business must have a large turnover is a business that has a fast expiration period and its life is short like food.

 Besides that, in maintaining the quality of a product that is still good in order to be accepted by consumers, the company must be able to measure the cash flow in the right profit so that it does not cause a loss.

 If if the turnover of goods is slow, the company will immediately rise or suffer losses because the goods cannot be sold again or the goods are damaged in service in a type of business whose turnover orientation can also be long-term oriented.

 2. Profit oriented business type 

Profit-oriented is the usual size owned by a business with a retail market product where the product has no expiration date. Unfortunately from this front, the orientation is long term because there are many tight competitors and must be able to work extra hard in order to make and develop bigger profits.


here is my article this time at first and the used can add to the insight of all friends, more or less I apologize, thank you for reading this article, it can be useful so you can share it with other friends, thank you.

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