Which financial term refers to the efficiency of managing expenses compared to revenue?

The most relevant financial term that refers to the efficiency of managing expenses compared to revenue is profit margin. Profit margin is a key indicator of a company's financial health, as it shows how much profit a company makes relative to its total revenue. Specifically, it is calculated by taking the net income and dividing it by the total revenue, which provides a percentage that reflects how much of each dollar earned translates into profit after all expenses have been accounted for.

In contrast, cost management focuses on overseeing and controlling a company's expenses but does not directly compare how these expenses relate to revenue. Gross profit refers to the difference between total revenue and the cost of goods sold but does not take into account other expenses such as operating costs or taxes. A revenue stream represents the various sources from which a business earns money, but it does not address how well a company manages its expenses in relation to that revenue.

Thus, profit margin effectively captures the balance between managing expenses and generating revenue, making it the correct answer to the question posed.