Asked by Jociee Anallam on Apr 24, 2024

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Operating and administrative efficiencies that result in lower expenses per dollar of sales possibly explain a trend where income grows faster than sales.

Administrative Efficiencies

Improvements or strategies that streamline administrative processes, leading to cost reduction and faster operations.

Sales Dollar

A measure of revenue generated from the sale of goods or services, expressed in dollars.

  • Recognize the importance of analyzing operating profits, profit margins, and their contributing factors.
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FJ
Frans JessicaMay 02, 2024
Final Answer :
True
Explanation :
Operating and administrative efficiencies can result in lower expenses per dollar of sales, leading to a trend where income grows faster than sales. This is because the company is able to increase profits without necessarily increasing sales, by cutting costs and improving efficiency.