On a cost-volume-profit graph,when the Total Cost line is higher than the Total Revenue line,the difference represents ________.
A) net income
B) a positive return on the investment
C) a net loss
D) not enough information is presented

Question

Quizplus · Accepted Answer

When the Total Cost line is higher than the Total Revenue line, it means that the company is not generating enough revenue to cover the costs incurred in producing and selling its products or services. This results in a net loss for the company. Therefore, the difference represents a net loss, which is option C.

On a Cost-Volume-Profit Graph,when the Total Cost Line Is Higher