When the revenue for a business is less than its costs, it is making a profit.

TRUE/FALSE

Question

Business

Trevor Newman

19 June, 09:36

When the revenue for a business is less than its costs, it is making a profit.

TRUE/FALSE

+4

Answers (1)

Know the Answer?

Charlize Hill · Answer 1

Answer: false

Explanation:

A firm is making profit when total revenue is greater than total cost.

A firm is making a loss when total revenue is less than total cost.

Profit or loss can either be accounting or economic.

Accounting profit or loss = Total revenue - Explicit cost

Economic profit or loss = Accounting profit or loss - implicit cost.

When the revenue for a business is less than its costs, it is making a profit.TRUE/FALSE

When the revenue for a business is less than its costs, it is making a profit.

TRUE/FALSE