What term describes the revenue that exceeds the costs associated with production?

The term "net profit" refers specifically to the amount of money a company makes after subtracting all costs of production, including expenses such as materials, labor, and overhead. Net profit provides a clear picture of the company's financial health, showing how efficiently it operates and whether it is generating a return on its investments.

Understanding net profit is crucial for businesses as it influences decisions regarding future investments, expansions, and overall strategy. It is distinct from the profit margin, which is a ratio demonstrating how much of each dollar earned is profit, but does not directly measure the total amount left over after all expenses. Other terms like investment and loss don't directly measure the revenue exceeding costs; investment pertains to the allocation of funds for future returns, while loss indicates a situation where expenses surpass revenues.