Which term refers to the examination of the subcomponents of a single revenue source?

The term that refers to the examination of the subcomponents of a single revenue source is disaggregation. Disaggregation involves breaking down a broad category into its smaller, more detailed parts, enabling a more granular analysis of the revenue source. This process is crucial in budgeting and financial analysis, as it allows policymakers and financial managers to understand better how individual elements contribute to overall revenue, identify trends or changes within those subcomponents, and make informed decisions based on detailed insights.

For instance, in analyzing tax revenue, disaggregation would mean looking separately at income tax, sales tax, and property tax, rather than treating them as a lump sum. This level of analysis helps in pinpointing which parts are performing well and which may need further attention or adjustment.

The other terms listed do not specifically pertain to the examination of subcomponents within a revenue source. Aggregation typically refers to the process of compiling various data points into a cohesive whole, while location quotient analysis is used to compare the concentration of a particular industry or demographic in a specific area relative to a larger area. The T-statistic is a measure used in statistical hypothesis testing and does not relate to the breakdown of revenue sources.