What is the term for total revenue minus total cost?

The term for total revenue minus total cost is profit. Profit is a crucial concept in business as it represents the financial gain obtained when the total revenue generated from sales exceeds the total costs incurred in the production and operation of the business. Understanding profit is essential for entrepreneurs and businesses to evaluate their financial health, make informed decisions, and determine the sustainability of their operations. It reflects how efficiently a business uses its resources to generate income, and it can be positive or negative, which indicates whether a company is succeeding or facing challenges financially.

In contrast, loss refers to a situation where total costs exceed total revenue, indicating that a business is not generating enough income to cover its expenses. Expense refers to the costs incurred in the course of business operations but does not show the relationship between income and costs. Revenue is simply the total income generated from sales without considering the costs associated with producing goods or services.