Interpreting a KPI with context
A fictional store’s monthly sales revenue rises 10%, but its costs rise enough that profit falls. What is the best evaluation?
A
Higher revenue proves that profit must also have increased.
B
Lower profit proves that no customer bought anything.
C
Costs should be excluded from every strategic evaluation.
D
Sales growth alone is insufficient to judge success; profitability and the reasons for cost growth also matter.
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