If selling price exceeds cost price; the difference is

When the selling price of an item surpasses its cost price; the resulting difference represents the financial gain from the transaction. This concept is fundamental in commerce; indicating a positive return on investment. Loss occurs when the cost exceeds the selling price; while discounts reduce the selling price; and commissions are fees for services. This distinction is crucial for understanding basic financial principles in business transactions; often explored in general knowledge contexts for its practical application in economics and trade.