What grouping of revenue do you believe the not for profit organization that you work for...

What grouping of revenue do you believe the not for profit organization that you work for uses (service line, revenue source, etc.)? Why do you think they chose this grouping? Is this a good choice or do you think there is a better option?

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Expert Solution

Answer:-- Organization uses the revenue source method. This is a better method for many reasons. The Revenue is grouped as source like Domestic Revenue ( With Third party and Intercompany sales) and International Revenue ( Third Party and Intercompnay Sales). This source based segergation is useful as such details are required in many other Govt Audits like Tax Audits, Transfer Audits and there is no need to regroup the information. The details for product wise and customer wise sales can anytime extracted from the same list as in today's ERP system the details of profit centres and product comes in each line item of sales.

I think this grouping is most suitable for financial and statutory presentation. The Profit Centrewise P/L statement as such provides a separate MIS report useful for management and main grouping of revenues on productline is not very useful.

The question is little bit misspelled. The line "Do you believe the[ not ]for profit

organisation.

Rahul Sunny answered 1 year ago

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