Revenue function

This article deals with the revenue function, which also yield function is called. For a function with a curve according to the law of income , see: Law of income .

The revenue function , also yield function or sales function called, is in the business cost accounting the relationship between the proceeds (revenues) and a reference amount (usually the sales volume) represents.

Assuming a constant sales price (no discounts or similar) one obtains the following general form of the revenue function:

${\displaystyle E(x)=p\cdot x}$

With

${\displaystyle E}$: Revenue function

${\displaystyle p}$: Price (sales price) of a reference value

${\displaystyle x}$: Reference quantity

The first derivative of the revenue function is called - analogous to the marginal costs on the cost side - marginal revenue .

Individual evidence

1. ^ Revenue function - definition in the Gabler Wirtschaftslexikon