What is the term used for revenue generated by "delivering a product"?

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Study for the Texas Aandamp;M University (TAMU) ACCT229 Exam. Get exam-ready with flashcards, detailed explanations, and multiple choice questions. Enhance your understanding and boost your confidence!

Sales revenue specifically refers to the income generated from the sale of goods or products to customers. When a company delivers a product to a consumer, the money earned from that transaction is classified as sales revenue. This term focuses on the sales aspect of a business's operations where products are sold, distinguishing it from other types of revenue such as service revenue, which pertains to income from providing services rather than tangible products.

Operational profit and gross revenue, while related to company's earnings, do not specifically capture the revenue aspect of product sales. Operational profit refers to the profitability of a company's core business activities after deducting operating expenses, and gross revenue generally refers to the total revenue generated before any deductions, including returns and allowances, which does not specifically denote product delivery revenue. Thus, sales revenue is the correct and most precise term for income from delivering products.