ECONOMICS
PROFIT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The money from selling goods and services
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Cash you are spending in the business
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Costs of running the business
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The outgoings relating specifically to vehicles
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Detailed explanation-1: -An expense is a cost that businesses incur in running their operations. Expenses include wages, salaries, maintenance, rent, and depreciation. Expenses are deducted from revenue to arrive at profits.
Detailed explanation-2: -According to the Internal Revenue Service (IRS), business expenses are ordinary and necessary costs incurred to operate your business. Examples include inventory, payroll and rent. Fixed expenses are regular and don’t change much-things like rent and insurance.
Detailed explanation-3: -plural noun. The running costs of a business are the amount of money that is regularly spent on things such as salaries, heating, lighting, and rent.
Detailed explanation-4: -Costs and expenses are similar concepts, and they’re sometimes used interchangeably, but there are some differences for businesses to consider. A cost typically refers to the price paid to acquire an asset, while an expense is an ongoing expense, such as an employee’s salary or rent on a retail space.
Detailed explanation-5: -Operating costs are the ongoing expenses incurred from the normal day-to-day of running a business. Operating costs include both costs of goods sold (COGS) and other operating expenses-often called selling, general, and administrative (SG&A) expenses.