Which of the following does not increase the net profit margin ratio?
A)Increasing sales volume.
B)Increasing sales price.
C)Reducing inventory kept on hand.
D)Decreasing operating expenses.

Question

Quizplus · Accepted Answer

Reducing inventory kept on hand does not directly increase the net profit margin ratio. The net profit margin ratio is primarily affected by factors that influence revenue and expenses directly related to sales and operations. Reducing inventory can lead to cost savings but does not inherently increase sales or reduce operating expenses directly impacting the net profit margin.

Which of the Following Does Not Increase the Net Profit