Inventory Turnover

question 47

Multiple Choice

Inventory turnover:

• A) is computed by dividing average inventory by cost of merchandise sold.
• B) measures the relationship between the volume of goods sold and amount of inventory carried.
• C) increases the risk of loss from damaged merchandise.
• D) is computed by dividing the beginning inventory plus the ending inventory by two.

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Definitions:

Direct Marketing

A strategy involving direct communication with individual consumers to obtain an immediate response and cultivate lasting customer relationships.

Differentiate Products

The strategy of making a product stand out from its competitors by emphasizing its unique features or benefits.

U.S. Advertising

The practice and industry of promoting products, services, or brands in the United States through various media channels.