Which of the following statements is true about revenue?
A)Revenue is the total amount received for selling a good or service.
B)Revenue is calculated by dividing the price per unit by the number of units sold.
C)The terms "revenue" and "profit" can be used interchangeably.
D)A firm's revenue will increase as its costs increase.

Question

Quizplus · Accepted Answer

Revenue refers to the total amount of money received by a company for selling its goods or services. It does not involve any calculation based on the number of units sold or the price per unit. Profit, on the other hand, refers to the amount of money earned after deducting all the relevant expenses from the revenue. Therefore, revenue and profit are two different concepts and can't be used interchangeably. Lastly, a company's revenue may or may not increase with a rise in its costs, as it largely depends on market conditions and pricing strategy.

Which of the Following Statements Is True About Revenue