What Is Inventory Turnover

question 100

Multiple Choice

What is inventory turnover?

• A) An unfilled customer order for a product that is out of stock
• B) The time it takes to manufacture a product and deliver it to the retailer
• C) The agreed-upon time between the purchase of a product and the delivery of the product
• D) The frequency of inventory replacement

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Definitions:

Compute

To calculate or determine by mathematical means, often referring to the use of computers to process data or solve problems.

Manufacturing Costs

The total expenses directly involved in producing goods, including labor, materials, and overhead costs.

Variable Overhead

Costs of production that fluctuate with the level of output, including items like utilities or indirect materials.

Fixed Overhead

The total of all overhead costs that do not change in response to activity levels in the short term, such as rent and salaries.