Revenue producing activities

Execution activities supported by materials acquisition include internal requests, placement of external orders and changes, receipt and acceptance of materials, and aU other transactions against materials orders. AU of these are revenue-producing activities. 

The execution activities supported by order entry and tracking include the revenue-producing activities of customer order capture, production start, and delivery start. 

Committee Management Business/Operation Plan Development/Management Revenue Producing Activities... 

Execution activities supported by materials inventory include receipt of shipment, inspection and acceptance, automatic ( low-water ) order placement, stocking, stores management, internal relocation, issuance and preparation, and aU other transactions on the materials inventory. Except for some stores management functions, aU of these are revenue producing. 

Execution activities supported by transportation include movement of parts between memufactur-ing centers and movement of spare parts and finished products to customers and distribution centers, all of which are revenue producing. The supporting activities of managing transportation fleets and services are also supported. 

The major enterprise execution activities supported by the finance management component are contracting, payroll, payment (of contractual obligations), invoicing, and receipt of payment. Payroll is a supporting activity, but payment and receipt are revenue producing. 

Research and development ac tivities do not, in themselves, produce a salable product. Thus, they cannot direc tly generate a return on capital outlay. A successbil research and development projec t is one that results in an activity that earns revenue for the company. The life cycle of the revenue from an individual product may be as shown in Fig. 9-26. 

If we start relying on small companies to produce advanced technologies, the industry will be hurting 10 or 15 years down the road. Small companies are very focused on the development end of technology and ensuring that they have a revenue stream. They don t have the resources to do research in broad areas. Companies need to have a balanced portfolio that includes a number of different avenues for doing fundamental research in and of itself fundamental research as it may apply to a technology, industry, and applications and applied research and advanced development activities. We need to have a balanced perspective of the research path. 

Reversible conditions imply that economic activity takes place at an infinitely slow rate thus, N = 0 and Wout = 0, but r has the maximum value of r c. Applying the same techniques as above for the heat engine, an optimal rate of goods Nopt can be determined for which the rate of tax revenues is at its maximum value. In conclusion, De Vos has shown that economics and thermodynamics, under certain assumptions, show a remarkable analogy in which the indirect tax revenue rate of the economic engine plays the same role as the power produced by a heat engine ... 

To recap, expenses are the cost of assets consumed or services used in the process of earning revenue. An asset is used up or a liability is incurred as a result of an operating activity. Expenses represent the cost of goods or services used up or consumed to produce revenue. 

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