if-a-companys-net-sales-increased-by-10-but-its-cost-of-goods-sold-increased-by-

Question

If a company's net sales increased by 10% but its cost of goods sold increased by 15%, what might this indicate to investors?

Accepted Answer

The company is facing higher production costs.

Answer

The company is reducing its operating expenses.

Answer

The company is expanding its market share.

Answer

The company is improving its profitability.