As a measure of performance, revenue growth typically occurs in lockstep with growth in profitability; i.e., as revenues increase dramatically so does profitability for nearly all firms.

Question

Quizplus · Accepted Answer

Revenue growth does not always lead to profitability growth, as increased revenues can be offset by higher costs, investments, or inefficiencies.

As a Measure of Performance, Revenue Growth Typically Occurs in Lockstep