Which of the Following Statements Regarding Comparisons Made in Managing

question 154

Multiple Choice

Which of the following statements regarding comparisons made in managing inventory is not true?

• A)In making comparisons of financial statements,it is desirable to compare data calculated using the same inventory costing methods.
• B)The inventory turnover ratio and days to sell measure will be affected by the cost flow assumptions used,which causes problems for financial statements users.
• C)Inventory turnover and days to sell are often affected by changes in the economic climate.
• D)The inventory turnover and days to sell ratios are consistent among companies in different industries.

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Definitions:

Wage Differentials

The variation in wage rates paid to different groups of workers, often based on skill, location, industry, or job function.

Human Capital

The stock of knowledge, habits, social and personality attributes, including creativity, embodied in the ability to perform labor so as to produce economic value.

Personal Prejudice

An unfounded or irrational bias towards individuals or groups based on characteristics such as race, gender, religion, or sexual orientation.

Demand for Plumbers

The need or desire for plumbing services in a market, which can vary based on factors like housing development and maintenance requirements.