单选题 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 inadministrative expenses

【正确答案】 C

【答案解析】Is correct as use of average cost gives a higher cost of sales (and in turn lower operating profit) than FIFO during rising prices.