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

Question

Quizplus · Accepted Answer

Margin is the difference between the selling price and the production or acquisition cost of a product or service. It represents the profit that a company makes on each unit sold. In the context of the question, the value generated by an activity is the revenue it generates, while the cost of the activity is the expense incurred to perform it. The margin, therefore, is the excess of revenue over costs and is a measure of the profitability of the activity. The other options, revenue, break-even point, and value-addition point, do not capture the net impact of an activity in the same way that margin does.

The Difference Between the Value an Activity Generates and the Cost