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

Question

Quizplus · Accepted Answer

Margin is the difference between revenue generated by an activity and the cost related to that activity. It is an important measure of profitability and indicates whether an activity is worth pursuing. Liability refers to an obligation that a company owes to others, while overhead is the administrative expenses that a company incurs in running its operations. Equity refers to the ownership interest that shareholders have in a company.

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