Why is it important to evaluate increases and decreases in operating expenses? (a) Increases in operating expenses

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Why is it important to evaluate increases and decreases in operating expenses?

(a) Increases in operating expenses may indicate inefficiencies, and decreases in operating expenses may be detrimental to long-term sales growth.

(b) It is important to determine whether companies are spending at least 10 cents of every sales dollar on advertising expenses.

(c) Increases in operating expenses are always an indication that a firm will increase sales in the future.

(d) None of the above.

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Understanding Financial Statements

ISBN: 9780138114404

12th Edition

Authors: Lyn Fraser, Aileen Ormiston

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