give two examples of operating and Non-Revenue producing
Answers
Answer:
For example, a private university may classify tuition received as operating revenue, whereas gifts from alumni are considered non-operating revenue (because they are not expected nor are they part of ordinary university operations).
The answers are:
Two examples of operating and Non revenue producing:
- Operating revenue: The alumni fee for the university.
Non revenue producing: The gifts donated by the alumni.
- Operating revenue: The food making and rooms in a hotel.
Non revenue : The Healthcare or rehad centre of that hotel.
Explanation:
Operating revenue is the revenue that a company generates from its primary business activities.
Non-operating revenue is revenue generated by activities outside of a company's primary operations. This type of revenue tends to be infrequent and oftentimes unusual.
The difference in simple English terms are
- Operating revenue helps the foundation to make more cash flow in for the business, which is basically increasing the revenue.
- Non operating or non revenue : these are the sectors in the business or the foundation where they do not expect cash to flow in. These certain factors do not increase any revenue value hence, they are called non revenue producing sectors or departments.
With this definition and a few points of difference this concept will become easier and the examples for these two sectors are given above.