what does the term TURNOVER of a firm exactly mean?.Whether its purchase and sales put together or just sales?

Question

please explain in context of TAMILNADU governments TAN VAT system.

Answer 1

The most common meaning of turnover is gross revenue. It's never purchases. However please note that there's Accounts Receivable Turnover, Fixed Asset Turnover, Inventory Turnover, Total Asset Turnover and Working Capital Turnover. Then there's employee or staff turnover which means how fast you're losing staff, which means you'll have to recruit new staff.

Answer 2

Turnover usually refers to the income from sales, before any costs.

So if a company sells 10 units at $100 each, pays wages of $200 and buys materials at $400, it has

- turnover of $1000
- costs of $600
- income of $400

Answer 3

Turnover is how many times inventory is sold and replaced during the year. Some companies measure turnover in how long it takes an individual item to sell (in terms of percentage of a year).

Answer 4

The turnover rate usually refers to how fast employees are replaced - or how long employees stay at the firm.