07 Analyse why 'value of sales' might be a better measure of business size than 'value of output'.

[MuhammadAli91191]

[KN] The value of sales measures the total money a business earns from selling its products, while the value of output only shows what has been produced, not what is actually sold.
[APP] For example, a company like Sony might produce many TVs, but if some remain unsold, its output value will be high but sales value will be lower showing the real size more accurately through sales.
[AN] Using the value of sales is better because it reflects the business’s financial strength and market position, helping managers make better choices about pricing, marketing, and production based on real customer demand.
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[Shaliza khawaja]

value of sales shows the revenue it generates from it's goods whereas value of output shows the amount of goods it produces
a clothing stores might make clothes worth $7000 but only sell $3000 due to less sales
hence value of sales is a better way to calculate businss size as it shows real demand in the market and how it efficiently converts its demand into revenue, furthermore it gives a stronger financial report as it shows rvenue from sold products and not all the products made.
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[Shuraim Arif]

(KN) Value of sales usually shows customer demands, whereas value of output only shows the inventory levels.
(APP) For example car manufacturing Company A manufactures 1000 units a month, but it only sells 600 per month, whereas Company B produces 700 units per month and sells around 690 or all 700 in the month.
(AN) This shows that although Company A produces more, its value of sales are lower than that of Company B, which has a far higher value of sales and shows that the demand for their cars are a lot more and they end selling all of their cars. This leads to higher effieciency for business B over Business A
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[Mamoona Hussain]

KN: Value of sales is a better a better measure as it shows the amount of revenue the business has generated whereas the value of output shows the the value of what the business has produced.
APP: For instance, Factory A produced toys worth £200,000 but sold only toys only worth £100,000 whereas Factory B produced toys worth £150,000 but sold them for £250,000. Therefore, even though the value of output for factory B was lesser than Factory A's bit it still earned higher revenue than Factory A.
AN: Due to this the value of sales shows the financial position of the business, allowing the stakeholders like investors to make better decisions about investing their money, and also increasing the finance raised by Factory B, which can be used to introduce new models of toys, which will attract more customers, improving brand image and enabling growth, proving that the measure 'value of sales' reflects the actual size of the business.
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[Mashal Umair Niazi]

KN: Value of output may go to waste/not be sold
APP: Eg a business outputs 200 units of a product - which will give us value of output - eg cans of soda, but sells only 100 - which will be our value of sales.
AN: Therefore the value of sales will accuratly tell us how much the profit margin/loss is and therefore can judge the reception of that buisness in the public aswell/its popularity hence give a better idea of if the buisness is large or not wheras value of output could be alot but if only some is sold, that would be a loss and rather cause the buisness to become smaller and limit itself hence is not an accurate measure.
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[AliAzeem]

[KN]Sales show the value of customer loyalty and demand while output is just the productivity of workers.
[APP]For example a wooden furniture business produces 100 chairs(output)and only some of them get sold due to their high quality.In this case value of sales will give a more accurate figure than value of output.
[AN]Higher value of sales means the business has a good brand image and the customers are loyal because of the good quality which leads to steadier sales and long term survival.
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[Abdul Hadi]

KN: Value of sales is a better way to measure the size of a business as th evalue of sales gives the value of goods sold while a value of production only gives value of products made regardless of their sale position.
APP: For example a car manufacture like ford might produce 10000 cars and only sold 7000 this gives the real performance of company in the market.
AN: Value of sales gives the actual demand of the product in a market and shows a real image of its performance, it also gives a realistic measure of the cash inflow as unsold goods dont generate revenue, it also gives an accurate competition between companies as their demand can be compared rather than production.
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[hassanalizafar]

[KN] Using the value of sales is often a better way to measure business size because it shows how much people are actually buying not just whats being produced.
[APP] For instance, Zara may make fewer clothes but sell most of them while another brand might make more stock but leave much of it unsold.
[AN] This makes sales a more accurate guide as it shows real customer demand which helps the business to understand its true market position which gives a clearer picture of cash coming in which leads to boost in investor confidence in the company and shows the real scale of the business more reliably than output.
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[Dania Farooq]

[KN] The value of sales is often a better way to measure business size than the value of output bcs it reflects how much customers are actually buying rather than just what the company produces.
[APP] For eg, a firm might produce a 1000 phones but only be able to sell 600,.The sales amount shows what customers have bought while the output includes the extra phones that are lying in the store.
[AN] Measuring by sales is better because it shows the real success of a business. It reflects how much revenue is actually earned nd how strong the customer demand is nd helps compare businesses more fairly since its based on what people truly buy nd not just what is produced.
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[sarah_naeem]

[KN]: Value of sales might be a better measure of business size than value of output as it shows the total revenue made by a business while value of output shows the value of what the business has produced.
[APP]: For example, a furniture shop might produce many products like dining tables, beds, sofa sets etc which shows that their value of output is higher but if those products aren't sold much and are remained in the shop this shows the actual size of business which is the value of sales.
[AN]: Thus, value of sales is a better measure as it doesn't show the number of items produced but shows the amount of sales a business had which also shows the increase in profit margin allowing investors to make the right decision, reducing wastage of money and also allowing business to expand which leads to long term growth of business.
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[Areeba Arshad]

[KN] The value of sales measures the total revenue a business earns from selling its goods or services, while the value of output measures what it produces.
[APP] For example, a clothing manufacturer might produce thousands of shirts (output), but only sell half of them (sales).
[AN] This shows that sales value better reflects actual customer demand, avoids overstating business performance with unsold goods and provides a more realistic measure of the firm’s true market success.

[Tuqwa]

kn:The value of sales measures the total revenue a business earns from selling goods and services, while the value of output measures the total goods produced.
app:Sales may be a better measure of business size because it reflects actual customer demand and market success. A business might produce a large amount of goods but if much of it remains unsold it doesnt truly show the firm’s performance or scale.
an:therefore sales revenue provides a more realistic measure of business activity as it shows what customers are actually buying and how well the business is performing in the market.

[Subhan Zafar]

{KN}Value of sales measures the total revenue a business earns from selling its products, while value of output measures the total value of goods produced.
{APP}For example, a car company like Ford might produce 10,000 cars in a year, but if only 7,000 are sold, the value of sales will be lower than the value of output. This shows how sales value reflects what the business actually earns.
{AN}his means value of sales is a better measure of business size because it shows real market demand and income, whereas value of output may overestimate size if a lot of goods remain unsold.