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

question 6

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.

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Definitions:

Adoption Study

A study that focuses on children who have been reared apart from their biological parents.

Biological Parents

The parents who contribute their genetic material to the offspring through reproduction.

Heritability

The degree to which genetic differences among individuals contribute to their differences in behavior or traits.

Genetic Differences

Variations in the DNA sequences among individuals that contribute to biological diversity.