The difference between the value that an activity generates and the cost of the activity is called the ________.
A) equity
B) liability
C) overhead
D) margin

Question

Quizplus · Accepted Answer

The difference between the value generated and the cost is commonly known as the margin, which represents the profit earned from the activity. It is a crucial metric in determining the financial health and profitability of a business. Options A and B are incorrect as equity and liability refer to financial obligations and ownership in the business, respectively. Option C, overhead, refers to the indirect costs associated with running a business (such as rent, utilities, and salaries), but it does not account for the value generated from a specific activity.

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