What is defined as the remaining monetary surplus after deducting all related expenses from sales revenue?

Prepare for the PLTW Computer Integrated Manufacturing Exam with our comprehensive quiz. Utilize flashcards, multiple choice questions, and step-by-step explanations to excel in your test!

The correct answer is profit, which is defined as the remaining monetary surplus after all related expenses have been deducted from sales revenue. In business terms, profit is a critical indicator of financial health and performance, as it measures how efficiently a company operates. Essentially, profit signifies the amount of money a business retains after covering its costs, including production, operational, and overhead expenses.

Understanding profit is vital because it provides insights into the effectiveness of pricing strategies and cost management. A company can generate revenue, but if expenses exceed that revenue, it will result in a loss rather than a profit. Profit is the ultimate goal for most businesses, as it allows for reinvestment, growth, and returns to shareholders.

The other terms related to financial performance have different implications. Revenue refers to the total income generated from sales before any expenses are deducted. Margin typically refers to the difference between the cost of goods sold and the selling price, often expressed as a percentage of sales. Income can refer to profit but may also encompass various other forms of earnings, complicating its definition in this context. Therefore, profit stands out as the most direct answer to the question asked.

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