FSA question about warning sign

CFA Level II FRA
#1

someone can explain this question for me in the book?

A warning sign that ordinary expenses are now being classified as nonrecurring or nonoperating expenses is:

A. falling core operating margin followed by a spike in positive special items.

B. a spike in positive special items followed by falling core operating margin.

C. falling core operating margin followed by a spike in negative special items

why it’s falling core operating margin with negative special items? I thought it was rising core operating margin with negative special item.

#2

Its a falling core opetating margin over time AND THEN a spike in non-reoccuring negative special items because the the company is now classifying items that were previously operating expenses as special items.

#3

u guys know phantom profits issues