Understand the economics of commercial performance.

Finance & Revenue Economics

Accounts receivable: Definition and Commercial Context

Amounts owed to an organisation by customers for delivered goods or services.

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Finance & Revenue Economics

Accrued revenue: Definition and Commercial Context

Revenue recognised before it has been billed or collected under applicable accounting rules.

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Finance & Revenue Economics

Annual recurring revenue: Definition and Commercial Context

The annualised value of recurring contracted or subscription revenue under defined rules.

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Finance & Revenue Economics

Billings: Definition and Commercial Context

Amounts invoiced to customers during a defined period.

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Finance & Revenue Economics

Bookings: Definition and Commercial Context

The value of orders or contracts secured during a period under a defined convention.

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Finance & Revenue Economics

Budget variance: Definition and Commercial Context

The difference between actual and planned financial results.

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Finance & Revenue Economics

Cash collections: Definition and Commercial Context

Cash received from customers against outstanding or current obligations.

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Finance & Revenue Economics

Cash conversion cycle: Definition and Commercial Context

The time between cash outflows for operations and cash collection from customers.

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Finance & Revenue Economics

Contribution margin: Definition and Commercial Context

Revenue remaining after defined variable costs are deducted.

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Finance & Revenue Economics

Cost-plus pricing: Definition and Commercial Context

Pricing calculated by adding a margin or markup to a cost base.

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