Stephen, a manager, believes that if his company's revenue hadn't increased last year, it wouldn't have been able to increase profits. The flaw in Stephen's thinking is that ________. Question 26 options: A) profits can also be increased by lowering costs, not just increasing revenue. B) the company can increase revenue by advertising more. C) profitability might not be the company's only objective. D) other similar companies have increased their profits, too. E) revenue doesn't contribute to profitability.

Revenue means the amount earned by selling the goods or services. Profit means the difference…

Answered: Stephen, a manager, believes that if…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Stephen, a manager, believes that if his company's revenue hadn't increased last year, it wouldn't have been able to increase profits. The flaw in Stephen's thinking is that ________.

Question 26 options:

A)	profits can also be increased by lowering costs, not just increasing revenue.

B)	the company can increase revenue by advertising more.

C)	profitability might not be the company's only objective.

D)	other similar companies have increased their profits, too.

E)	revenue doesn't contribute to profitability.

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