Reducing expense to increase operating profit is representative of:
A)ensuring accurate,reliable accounting records.
B)following company policies.
C)safeguarding assets.
D)promoting operational efficiency.

Question

Quizplus · Accepted Answer

Reducing expenses is a strategy to increase operating profit, which is related to promoting operational efficiency. A company can reduce expenses by streamlining processes, minimizing waste, and improving productivity, among other measures. Therefore, option D is the best answer. Options A, B, and C, may also contribute indirectly to reducing expenses, but they do not reflect the main goal of reducing expenses to increase profit. Ensuring accurate and reliable accounting records is critical to detecting and preventing fraud, errors, and misstatements, but it does not necessarily lead to reducing expenses. Following company policies and safeguarding assets are important for compliance and risk management but may not directly impact expenses.

Reducing Expense to Increase Operating Profit Is Representative Of