All the costs associated with running the business are referred to as what?

• A. Total Costs
• B. Sales Revenue
• C. Profit
• D. Brand

Answer: (A)

In business, what the company spends to operate includes all kinds of costs, and when you add them all up you get the total costs. This covers fixed costs that stay the same (like rent or salaries) and variable costs that change with output (like raw materials and utilities). Total costs are what you compare to the revenue coming in to see if the business makes a profit.

Sales revenue is the money earned from selling goods or services, not what it costs to run the business. Profit is what you get when you subtract total costs from sales revenue. Brand refers to an intangible asset representing the business’s reputation and recognition.