Which term is defined as Sales minus variable costs and fixed costs?

Which term is defined as Sales minus variable costs and fixed costs?

• A. Net Profit
• B. Net Income/Loss
• C. Money
• D. Networking

Answer: (A)

Profit after covering all costs is what you get when you subtract every expense from sales. If you start with sales and subtract both variable costs (those that rise and fall with volume) and fixed costs (the costs that stay the same), the amount left is net profit. This is the money the business actually earns after paying all its expenses, and it’s often called net income as well. So net profit is the best match for the definition given. The other terms don’t capture this exact result—money is just currency, networking is unrelated, and net income/loss is essentially the same idea in many contexts, but net profit here is the standard label.

Profit after covering all costs is what you get when you subtract every expense from sales. If you start with sales and subtract both variable costs (those that rise and fall with volume) and fixed costs (the costs that stay the same), the amount left is net profit. This is the money the business actually earns after paying all its expenses, and it’s often called net income as well. So net profit is the best match for the definition given. The other terms don’t capture this exact result—money is just currency, networking is unrelated, and net income/loss is essentially the same idea in many contexts, but net profit here is the standard label.