Quiz on Revenue and Costs

What is the combined income generated from the sale of goods and services called?

• Cost of goods sold

• Revenue

• Net profit

• Operating expenses

Which term refers to the direct costs associated with the production of a product, including raw materials and labor?

• Gross profit

• Operating expenses

• Cost of goods sold

• Markup

What is the difference between revenue and cost of goods sold known as?

• Net profit

• Gross profit

• Operating expenses

• Retail price

What are the expenditures retailers incur during normal business operations, such as rent and staff salaries, called?

• Operating expenses

• Markup

• Revenue

• Cost of goods sold

What is the difference between revenue and expenses, including all expenses of buying and producing products, called?

• Gross profit

• Net profit

• Retail price

• Markup

What is the term for the difference between the price an item is sold for and the price the retailer paid for it?

• Markup

• Markdown

• Profit margin

• Cost

What is the percentage by which revenue from sales exceeds business cost for items called?

• Retail price

• Profit margin percentage

• Operating expenses

• Net profit

What is the amount paid by the retailer to the manufacturer or supplier for an item called?

• Retail price

• Cost

• Markup

• Markdown

What is the amount the customer pays the retailer for a product called?

• Cost

• Retail price

• Net profit

• Gross profit

What is the amount added to the cost of a product to cover expenses and provide a profit called?

• Markdown

• Operating expenses

• Markup

• Revenue