What term is used to describe the total amount earned by a business after costs have been deducted?

The term that describes the total amount earned by a business after costs have been deducted is "Net Profit." This term represents the actual profit made by a business after all expenses, including operating costs, taxes, interest, and other expenses, have been subtracted from total revenue. It is a key indicator of a company's financial health and is often used by businesses to assess their profitability.

Net Profit is crucial for decision-making and future planning within a business because it shows how much money the business has left over to reinvest, pay dividends, or save. This figure is also important for investors and stakeholders because it provides insight into the company's efficiency in managing its resources and its capability to generate profit.

The other terms mentioned have different meanings. "Net Income" often overlaps with Net Profit but can also refer to a slightly broader context depending on specific financial reporting standards. "Gross Revenue" refers to the total revenue generated from sales without deducting any expenses, while "Operating Margin" specifically examines profitability in relation to revenue from core business operations, excluding other income and expenses. Each of these terms serves a unique purpose in financial analysis, but Net Profit is specifically the figure that reflects the company's earnings after all costs have been accounted for.