The objective of increasing profitability is LESS likely to be accomplished by
A) Increasing costs
B) Improving asset utilization
C) Concentrating on customer retention
D) Improving the sales mix
E) Reducing customer turnover

Question

Quizplus · Accepted Answer

Increasing costs generally reduces profitability unless those costs are associated with investments that lead to greater efficiencies, higher sales, or other benefits that outweigh the costs. Improving asset utilization, concentrating on customer retention, improving the sales mix, and reducing customer turnover are strategies that can lead to increased profitability by either reducing costs or increasing revenue.

The Objective of Increasing Profitability Is LESS Likely to Be