Commissioner: Budget forecasters project a revenue shortfall

I have to say this question's structure is really good and is NOT easy as some one says. I see many debates between B and E. I'm not a pro-CR analyst, but I picked the correct answer B by applying exactly CR-bible chapter 10 - Method of Reasoning question.

A. Analysis:

1. Type of question: Method of Reasoning - Flaw in the reasoning question.

2. What a correct answer looks like: "To identify the right answer choice, carefully consider the reasoning used in the stimulus. The correct answer will identify the error in the author's reasoning and then describe that error in general terms. Beware of answers that describe a portion of the stimulus but fail to identify the error in the reasoning" - Power Score CR Bible, page 214.

3. Incorrect answers:
- "New" element answers.
- Haft right, haft wrong answers.
- Exaggerated answers.
- Opposite answers.
- Answers that only describe a portion of stimulus, but not show a reasoning.

B. Apply:

Structure: Revenue shortfall; no way to increase funds; --> have to cut expenditures. --> can solve the problem - revenue shortfall.

Flaw: cut expenditure does not mean the company can solve the real problem - revenue shortfall. The key problem needed to be solved here is how to prevent revenue shortfall, not how to prevent the profit decline.

Pick answer:
A, C and D are out right away because they are out of scope.
E is also wrong, it only repeats a portion of stimulus, but it doesn't show a flaw. (favorite trap of GMAC)
B is correct, it states that the argument confuses between an adequate solution (cut expenditure) and a required solution (Prevent revenue shortfall).

Hope it's clear now.

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Please kudo if my post helps!