Profit
Definition
Profit is the financial gain obtained when revenues exceed expenses in a business transaction.
Analogy
Think of profit like getting paid for doing chores around your house. If you receive more money than you spent on supplies for your task, then you make a profit!
Related terms
Loss: The opposite of profit; occurs when expenses exceed revenues in a business transaction.
Revenue: The total amount of money generated from sales or services provided by a business.
Marginal Cost: The additional cost incurred when producing one additional unit of a product or service.
"Profit" appears in:
Subjects (2)
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