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Basic Question 1 of 6

A company's COGS as a percentage of revenue is increasing over time. This might indicate:

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.

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Craig Baugh

Craig Baugh

Learning Outcome Statements

explain approaches to forecasting a company's operating expenses and working capital

CFA® 2025 Level I Curriculum, Volume 3, Module 7.