The difference between the value that an activity generates and the cost of the activity is called the ________.
A) margin
B) turnover
C) revenue
D) value-addition

Question

Quizplus · Accepted Answer

Margin is defined as the difference between the revenue generated by an activity and the cost of that activity. It is also known as profit margin, and is a key indicator of financial performance for businesses. Turnover refers to the total amount of revenue generated by a business, while revenue is the income generated from selling products or services. Value-addition is the process of adding value to a product or service through various activities, and is directly related to the margin generated by those activities. Therefore, the correct answer is A) margin.

The Difference Between the Value That an Activity Generates and the Cost