Which of the Following Statements Is Incorrect

Which of the following statements is incorrect?

A) A company implementing a cost advantage strategy is attempting to reduce investment in assets thereby improving the asset turnover ratio.
B) A company implementing a product differentiation strategy is attempting to improve its profit margin through charging higher prices.
C) A company will attract a higher volume of customers and revenue by following a product differentiation strategy versus a cost advantage strategy.
D) Financial leverage is a function of both total assets and stockholders' equity.

Correct Answer:

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