QUESTION 1

Economics

Economics

Relationship between Costs and Revenue

Revenue is the total money organizations get when they sell their goods. This is the earnings of the company from the sales of goods or services. Costs related to the expenses that the company has to bear on account of its operations. These costs are to be paid from the revenue the organization earns. The balance amount is the operational profit. Hence, the relationship between cost and revenue can be considered to be a directly proportional relationship. Costs and revenue are directly related to each other and both these terms reflect the profits of an organization. ...