what is the defination...
2007-09-15 16:25:32 · 6 answers · asked by tushar_ri 1 in Business & Finance ➔ Careers & Employment ➔ Marketing & Sales
Turn over is the number of people or parts or items usually. Sales is strictly dollars.
In a restaurant: sales is total dollar amount served. Turn over is how many people were served.
Help any?
2007-09-15 16:30:57 · answer #1 · answered by Skip S 2 · 0⤊ 0⤋
Turnover has different meanings in the US and in Britain. Where are you located?
I believe the British turn for turnover is the same as sales in the US. However, for some companies, sales and turnover are not the same as revenue. Take an insurance agency...all their income is based on the commissions that they receive, not on the sales that they make.
2007-09-15 23:43:01 · answer #2 · answered by hottotrot1_usa 7 · 0⤊ 0⤋
Sales is what goes out the door, that you get paid for.
Turnover is the ratio of sales to inventory. If you sell $10,000 of merchandise per week, and you keep $130,000 of inventory in your store, then you are turning over your inventory 4 times a year.
Some stores turn over their inventory more rapidly than others. If a bakery doesn't sell all their bread daily, they have to mark it down significantly. Meat markets and greengrocers also need to turn over their inventory frequently.
WalMart tries to do 12 turns annually. It's not easy, and they don't always accomplish that.
High-end jewelry stores figure they are doing good if they do 1/2 a turn annually.
2007-09-15 23:36:50 · answer #3 · answered by Anonymous · 1⤊ 0⤋
Turnover can refer to inventory or accounts receivable.
Inventory turnover is Total Annual Sales (or period in question) divided by the Average Monthly Finished Goods Inventory (priced at wholesale or retail, depending on your business).
For $1,000,000 in sales with an average inventory of $100,000, the Finished Goods Inventory Turnover is 10.0.
AR turnover is Total Annual Sales divided by Average Monthly Accounts Receivable Balance..
For $1,000,000 in sales with an average AR of $200,000, the Accounts Receivable Turnover is 5.0.
If a company "ages" its AR, turnover can be calculated by dividing 360 (or 365) by the average AR age. If the average AR age is 72 days, the AR Turnover would be 360 divided by 72, or 5.0.
2007-09-16 00:03:34 · answer #4 · answered by Latigo 3 · 0⤊ 0⤋
Turnover is the number of sales in a given period of time.
2007-09-16 18:45:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋
financial figure of the goods sold is called turnover.
2007-09-16 07:26:44 · answer #6 · answered by Diamond 2 · 0⤊ 0⤋