Inventory Turnover Refers To

question 17

Multiple Choice

Inventory turnover refers to:

• A) customer handling of merchandise on display frequency in a retail operation.
• B) number of times inventory is sold in a year.
• C) the need to replace old inventory with fresh product.
• D) the frequency with which new models are brought to the market.

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Definitions:

Opportunity Cost

The price paid for not selecting the next most favorable opportunity when deciding.

Production Possibilities Frontier

A curve that depicts all maximum output possibilities for two or more goods given a set of inputs (resources, labor, etc.), assuming all are used efficiently.

Labor Force

The total number of people employed and unemployed, actively seeking employment in an economy.

Production Possibilities Frontier

A curve depicting the maximum output of two goods that can be produced with given resources and technology, assuming all resources are fully utilized.