The expense ratio (total expenses ÷ sales) is always A - HSC - SSCE Business Studies - Question 17 - 2017 - Paper 1

This option is also incorrect. The expense ratio does not relate simply to the difference between sales and the gross profit ratio; it incorporates total expenses relative to total sales.

This statement could be true in certain scenarios but is not universally applicable. The gross profit ratio reflects profitability from sales after deducting direct costs, while the expense ratio reflects total expenses, which often exceed gross profit.

This option is generally true. The net profit ratio accounts for all expenses, including non-operating expenses, while the expense ratio only considers total expenses against sales and is usually higher than the net profit ratio.