For a farm business, total revenue minus total cost equals:

For a farm business, total revenue minus total cost equals:

• A. Profit
• B. Loss
• C. Revenue
• D. Margin

Answer: (A)

Profit is the amount left after subtracting all costs from the revenue earned. In a farm, revenue comes from selling crops, livestock, and any other income, while costs include both fixed expenses (like equipment depreciation) and variable expenses (such as feed, seed, fertilizer, fuel, and labor). Subtracting total cost from total revenue yields the net earnings the farm has generated. A positive result means the farm earned more than it spent, which can be reinvested or taken as profit. If costs exceed revenue, that result is a loss. Remember that revenue is just the income side, not what remains after paying costs, and margin is a related concept that describes profitability as a ratio or percentage, not the exact dollar amount of profit. For example, if revenue is $150,000 and total costs are $120,000, profit is $30,000.

Profit is the amount left after subtracting all costs from the revenue earned. In a farm, revenue comes from selling crops, livestock, and any other income, while costs include both fixed expenses (like equipment depreciation) and variable expenses (such as feed, seed, fertilizer, fuel, and labor). Subtracting total cost from total revenue yields the net earnings the farm has generated. A positive result means the farm earned more than it spent, which can be reinvested or taken as profit. If costs exceed revenue, that result is a loss. Remember that revenue is just the income side, not what remains after paying costs, and margin is a related concept that describes profitability as a ratio or percentage, not the exact dollar amount of profit. For example, if revenue is $150,000 and total costs are $120,000, profit is $30,000.