Explain How Inventory Management Is Evaluated Using the Merchandise Turnover

question 308

Essay

Explain how inventory management is evaluated using the merchandise turnover and days' sales in inventory ratios.

---

Definitions:

Credit Sales

Transactions where goods or services are provided to a customer with the agreement that payment will be made at a future date.

Non-Growth Firm

A business that does not expect to increase its revenue or expand its market share significantly over time.

Cash Positions

The amount of cash or cash-equivalents that a company or individual has available at any given time.

Aversion To Risk

Risk aversion is the preference to avoid uncertainty.