We refer to the costs required to generate revenue as what?
A. Salary
B. Retention
C. Expenses
D. Net income
C. Expenses
The correct answer is C. Expenses.
To arrive at this answer, we need to understand the different categories of costs and their relationship to revenue generation.
Expenses refer to the costs incurred by a business in its normal day-to-day operations to generate revenue. These expenses can include items such as rent, utilities, salaries, advertising, and supplies. Essentially, any cost necessary to operate the business and deliver products or services to customers would be considered an expense.
On the other hand, the salary mentioned in option A is a component of the expenses, as it represents the compensation paid to employees for their work. Retention mentioned in option B typically refers to efforts made by a company to keep customers or employees but does not directly relate to costs required to generate revenue.
The term "net income" mentioned in option D refers to the profit or earnings of a business after all expenses and taxes have been deducted from the revenue. While net income is related to costs and revenue, it is not the term used specifically for the costs required to generate revenue.