If an Entity's Selling and Distribution Expenses to Sales Ratio

Multiple Choice

If an entity's selling and distribution expenses to sales ratio increases from 2.5% in one year to 3.8% the following year,this indicates that:

A) the entity has become more efficient in controlling its selling and distribution expenses over the period.
B) the entity has become less efficient in controlling its selling and distribution expenses over the period.
C) selling and distribution expenses are a lower percentage of sales.
D) the entity's profitability has decreased.