Understanding "Revenue"
In the Amoeba Management System, an amoeba's revenue is understood using the following four methods.
1. Custom-Order Method
A customer orders a specific quantity of products, which the company then produces in the quantity requested with the specifications required.
2. Sales-Stock Method
Departments purchase (or produce) goods before the customer orders them, based on anticipated demand — and we sell them when an order is received.
3. Internal Sales and Purchases
Before products can be completed and sold, items must flow through various production processes within a company. Amoeba Management reveals this flow of money and partially completed product between process stages.
4. Internal Co-operation Value
This is a mechanism for understanding the revenue of each department providing a service in cases where multiple departments provide services to a customer — particularly in service industries.