- CFA Exams
- CFA Level I Exam
- Topic 5. Equity Investments
- Learning Module 7. Company Analysis: Forecasting
- Subject 3. Forecasting Operating Expenses and Working Capital
CFA Practice Question
A company's COGS as a percentage of revenue is increasing over time. This might indicate:
B. An improvement in operational efficiency.
C. A decline in profitability and potential cost management issues.
D. Higher revenue growth.
A. An increase in net profit due to cost savings.
B. An improvement in operational efficiency.
C. A decline in profitability and potential cost management issues.
D. Higher revenue growth.
Correct Answer: C
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