Profit
Profit is the financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity. It is the difference between the total revenue and total costs incurred during a given period. Profit is the primary goal of any business, and it is the measure of success for any business activity. Profit is also used to measure the efficiency of a business, as it is the difference between the total revenue and total costs incurred during a given period.
History of Profit
The concept of profit has been around since the dawn of commerce. In ancient times, merchants would use profit to measure the success of their business activities. Profit was also used to measure the efficiency of a business, as it was the difference between the total revenue and total costs incurred during a given period. Profit was also used to measure the success of a business in terms of its ability to generate wealth. In modern times, profit is still used to measure the success of a business, but it is also used to measure the efficiency of a business, as it is the difference between the total revenue and total costs incurred during a given period.
Comparison of Profit
| Revenue | Expenses | Taxes | Profit |
|---|---|---|---|
| $100 | $50 | $10 | $40 |
| $200 | $100 | $20 | $80 |
| $300 | $150 | $30 | $120 |
Summary
Profit is the financial gain that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity. It is the difference between the total revenue and total costs incurred during a given period. Profit is the primary goal of any business, and it is the measure of success for any business activity. For more information about profit, you can visit websites such as Investopedia, The Balance, and Business Insider.
See Also
- Revenue
- Expenses
- Taxes
- Gross Profit
- Net Profit
- Operating Profit
- Profit Margin
- Return on Investment (ROI)
- Cash Flow
- Break-Even Point
