Economics Chp.14 (1)

The process of comparing cost vs. benefits in determining if a business should expand its operation

Less than 1 year (cash flow issues)
Type of financing and the length of time 

1 to 10 years (vehicles)
Type of financing and the length of time 

10 or more years (mortgages) 
Type of financing and the length of time 

Money received from customers in return for providing goods or services

Total cost of providing a good or service

Revenues minus cost (expenses). More revenue than expense results in a profit or gain. More expense than revenue results in a debit or loss