Question

What is the difference between profit and revenue?

Answer 1

Answer:

A. Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.

Explanation:

Revenue alludes to the measure of cash your business is accepting as installments from your clients previously any expenses or costs are deducted. It is appeared at the best thing of the pay explanation from which all charges, costs, costs are deducted to get the benefit of the association. Profit is the surplus staying after all out expenses are deducted from absolute income.

Answer 2

The correct answer is A) Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.

Let's suppose you sell sportsbooks. When you sell one book, you charge $20. That is the revenue or total amount after selling the book. At the end of the day, you sell five books and receive $100. That is the revenue of the day. But that money is not all for you. You need to page fixed cost, wages, taxes. So a profit is what you keep after subtracting costs and taxes. For instance, of the $20 per book, 15 dollars go to all of the mentioned concepts and you keep $5. That is your profit.

So yes, the difference between profit and revenue is the following: Revenue is the total amount producers receive after selling a good. Profit is the total amount producers earn after subtracting the production costs.