False
Value creation is the key to increasing a company's profitability.
Profit is defined as the difference between an economic entity's revenue from outputs and its opportunity costs for inputs. It is equivalent to total revenue less total costs, which include both direct and indirect costs.
A company's profitability is determined by comparing its revenue against its outgoing costs. A more efficient business will make more money relative to its costs than a less efficient one, which would have to spend more to make the same amount of money.
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