Ostroff, Fair and Company
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Revenues collected?



describe how price may differ from revenues collected from third party payers. What causes the difference?

There are a few things which can cause a difference between revenue collected and the sales price.

The most likely is that some buyers are buying on credit and haven't paid yet, and may never pay. This does not affect your sales price, but it does reduce your revenue collected.

Likewise in some situations buyers may pay a premium in order to take delivery early. This would make your revenue collected exceed your price. Source(s): Senior Financial Controller
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