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However, to evaluate the effectiveness of production and business, revenue must be combined with the costs. Revenue increased but costs rose more than the business enterprise did not work.
The cost: are the resources of the business lost to achieve specific goals. Expenses reflect management skills, use of company resources. It combines revenue to reflect the efficiency of production and business operations of the business.
Profits
In economics perspective, is part of the assets that investors receive more investment thanks after deducting costs associated with such investments, including opportunity cost, which is the difference between total revenue and total cost.
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