Sales increased. Revenue didn't increase. Is that an indicator that the staff defrauded the business?

[Kross]

The records of a business in a particular month showed that sales increased by 35% from the last month. Revenue is still around the the same figure as the last month.

How is that even possible? Has the staff defrauded the business?

 

[Suba]

Even if your sales increase, revenue may not be growing. There are many contributing factors, such as wasted electricity, water, and transportation costs, which lead to high costs, or excessive discounts given to customers. To detect employee fraud, you need to audit your financial statements.

 

[Trush Jodie]

If the costs of production increased in that month even as sales increased, it is possible that the revenue might still stay the same. same