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:

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, indicating how much the individual values in a dataset differ from the mean.

Lead Time

The time interval from the initiation of a process to its completion, often used in manufacturing and supply chain management to gauge efficiency.

Satisfactory Answers

Responses or solutions to questions or problems that meet the required standards or expectations without necessarily being the best possible.

P And Q Inventory Systems

P and Q Inventory Systems refer to inventory management strategies: P system (periodic review) and Q system (continuous review), aimed at maintaining optimal stock levels.