Which of the following ratios increases when a company switches from FIFO to LIFO during a period of increasing unit costs?

A) Net profit margin.
B) Inventory turnover.
C) Quick.
D) Current.

Inventory Turnover

A financial ratio that measures how often a company's inventory is sold and replaced over a specific period.

Net Profit Margin

A financial metric that shows the percentage of revenue that remains as profit after all expenses, interest, and taxes have been deducted.

FIFO

First In, First Out (FIFO) is an inventory valuation method where goods that are first acquired are the first to be sold, useful in managing inventory and costs.