The total amount of business is the sum of the final cumulative amount of main business income and other business income in the income statement.
Total turnover is the cumulative amount of main business income in the final income statement.
Calculation of total business volume:
Total business = main business income+other business income
Operating profit = operating income-operating cost-business tax and surcharges-operating expenses-management expenses-financial expenses-asset impairment loss+fair value change income (or minus change loss)+investment income (or minus investment loss).
Turnover:
Turnover refers to the total price and extra-price expenses charged by taxpayers to the other party for providing taxable services, transferring intangible assets or selling real estate. Out-of-price charges include fees, funds, agency charges, collecting funds, prepaid funds and other out-of-price charges of various nature. The turnover of transport logistics enterprises engaged in combined transport business is the actual turnover.
Commonly used turnover formulas are: turnover/transaction times = average transaction unit price, and turnover/sales quantity = average product unit price.
Turnover is the total price and extra-price expenses obtained by an enterprise in its production and business activities because of selling products or providing services.
Operating income consists of main business income and other business income:
The main business income refers to the income obtained from the continuous and main business activities of an enterprise. The main business income accounts for a large proportion of enterprise income, which has a decisive impact on the economic benefits of enterprises.
Other business income refers to the income obtained by an enterprise from other business activities other than its main business activities, which accounts for a small proportion of the enterprise income.
The significance of operating income:
Operating income is the source of funds for enterprises to compensate production and operation expenses.
The realization of operating income is related to the normal production activities of enterprises. Strengthening the management of operating income can make all kinds of expenses of enterprises get reasonable compensation, which is conducive to the smooth progress of reproduction activities.
Operating income is the main operating result of an enterprise and an important guarantee for the enterprise to obtain profits.
Strengthening the management of operating income is one of the important means to realize the financial objectives of enterprises.
Operating income is an important part of enterprise cash inflow.
Strengthening the management of operating income can enable enterprises to deeply study and understand the changes of market demand, so as to make correct business decisions, avoid blind production, improve quality of enterprise and enhance the competitiveness of enterprises.