Profit is worked out as:

revenue − costs — Profit = revenue − costs.

The point where revenue exactly covers costs (no profit, no loss) is:

break-even — That point is break-even.

The money flowing into and out of a business over time is its:

cash flow — That is cash flow.

JOMKELAS

Chapter 5

Financial Information and Decisions

Name: JomKelas
Address: Kuala Lumpur, Wilayah Persekutuan, MY
Telephone: +60175850844
Price range: RM50 - RM300
Rating: 4.9

Profit, revenue and costs, cash flow and break-even — with an interactive exercise.

Financial Information and Decisions looks at a business's money.

Profit

Profit = Revenue − Costs

If revenue is RM100 and costs are RM60, profit is RM40. Businesses also manage cash flow and work out their break-even point (where revenue exactly covers costs).

Remember

Profit = revenue − costs.
Break-even = no profit and no loss.

Stuck on this topic? A verified JomKelas tutor can walk you through it.

Find a verified tutor