Loss - GCSE Business Definition

Loss refers to a financial situation in which a firm's total costs exceed its total revenues over a specific time period. When the costs of producing goods or services are higher than the revenues generated from their sale, a loss is made. Understanding loss is crucial for GCSE Business students as it highlights the importance of cost management and effective pricing strategies in business operations. Losses are identified through financial statements. Consistently experiencing losses can signal operational issues or market challenges that need to be addressed to achieve profitability.