Which of the Following Performance Measures Will Increase If Inventory

question 60

Multiple Choice

Which of the following performance measures will increase if inventory decreases and all else remains the same? $\begin{array} { l l l } & \text { Return on Investment}& \text {Residual Income }\\\text { A) } & \text { Yes } & \text { Yes } \\ \text { B) } & \text { No } & \text { Yes } \\ \text { C) } & \text { Yes } & \text { No } \\ \text { D) } & \text { No } & \text { No } \end{array}$

• A) Choice A
• B) Choice B
• C) Choice C
• D) Choice D

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Definitions:

Degrees of Freedom

Degrees of freedom refer to the number of values in a statistical calculation that are free to vary without violating the constraints of the calculation.

Population Standard Deviation

A measure of the dispersion or variability within a population data set, indicating how spread out the data points are from the mean.

Interval Estimate

An estimate of a population parameter that gives an interval believed to contain the parameter.

Degrees of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution without violating any constraints.