Which term is NOT part of the PILER mnemonic?

Which term is NOT part of the PILER mnemonic?

• A. Profit
• B. Cost
• C. Revenue
• D. Expenses

Answer: (B)

PILER is used to remember the main terms that describe profitability and financial performance. Revenue represents the total money coming in from sales, expenses are the costs incurred to operate, and profit is what’s left after those expenses are subtracted from revenue. In this mnemonic, a separate term for cost isn’t included; cost is generally treated as a kind of expense and isn’t listed as its own item in PILER. That’s why cost isn’t part of the PILER set, while profit, revenue, and expenses are.

PILER is used to remember the main terms that describe profitability and financial performance. Revenue represents the total money coming in from sales, expenses are the costs incurred to operate, and profit is what’s left after those expenses are subtracted from revenue. In this mnemonic, a separate term for cost isn’t included; cost is generally treated as a kind of expense and isn’t listed as its own item in PILER. That’s why cost isn’t part of the PILER set, while profit, revenue, and expenses are.