Total revenue minus total cost equals:
Understand the Problem
The question is asking for the formula that represents the relationship between total revenue and total cost, commonly known as profit. In this case, it helps to clarify the basic accounting equation.
Answer
Profit
The final answer is profit.
Answer for screen readers
The final answer is profit.
More Information
Profit is the amount by which total revenue exceeds total costs. It represents the financial gain a business entity earns over its period of operation.
Tips
A common mistake is confusing profit with other financial metrics such as revenue, income, or gross margin. Make sure to understand the definitions of these terms.
Sources
- Notes on Cost of Production - web.mnstate.edu
- Solved: Total revenue minus total cost equals - chegg.com
- Total profit is equal to - homework.study.com
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