ECONOMICS

Detailed explanation-1: -Profit is the income left over after the cost of production is paid for with revenue. The Dummies website explains it as the difference between total revenue and total cost. Businesses first use revenue to cover the costs of production, but after those invoices are paid, any leftover revenue represents profit.

Detailed explanation-2: -Both revenue and cost are important concepts in economics. While cost is the. expenditure incurred to produce a good or service during the production process, revenue is the money received by the producer by selling that good or service.

Detailed explanation-3: -A revenue analysis can reveal which products or services sell better or which areas need improvement. They also help the company track its progress by comparing recent revenue analyses to quarters or years prior. Cost analyses help indicate the expected costs of products, assets and plans of action.

Detailed explanation-4: -Cost, revenue and profit are the three most important factors in determining the success of your business. A business can have high revenue, but if the costs are higher, it will show no profit and is destined to go out of business when available capital runs out.