Britt Company Selected Data from Britt Company's Financial Statements Are Provided Below

question 62

Multiple Choice

Britt Company
Selected data from Britt Company's financial statements are provided below.

- Refer to the selected financial data for Britt Company. Assume that competitors in Britt's industry have an average inventory turnover ratio of 20.8 times in 2012. Britt's inventory turnover ratio for 2012 indicates that the company:

• A) has too little inventory on hand at the end of 2012.
• B) is pricing its products too low.
• C) is selling its inventory much more quickly than the industry average.
• D) may have problems with generating sales.

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Definitions:

Balanced Scorecard

A strategic planning and management system that is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Organizational Performance

Refers to how well an organization is meeting its goals and objectives through the efficiency and effectiveness of its operations and resource use.

Customer Service

The assistance and support provided by a company to those people who buy or use its products or services.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue.