Which of the Following Statements Is Correct

Multiple Choice

Which of the following statements is correct?

A) An expense to sales ratio of 10% in year 1 and 15% in year 2 indicates that management policies to control expenses have been successful.
B) In general, the faster the turnover of inventory the lower the profitability of the business.
C) A gross profit ratio that is increasing over time indicates an increase in the margin between the purchase price and the selling price of goods.
D) The formula for the inventory turnover ratio is sales divided by average inventory.