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MC Question 20
Which of the following current year events would explain a fall in a company’s operating profit margin compared
to the previous year?
| A | An increase in gearing leading to higher interest costs |
|---|---|
| B | A reduction in the allowance for uncollectible receivables |
| C | A decision to value inventory on the average cost basis from the first in first out (FIFO) basis. Unit prices of inventory had risen during the current year |
| D | A change from the amortisation of development costs being included in cost of sales to being included in administrative expenses |