Which of These Statements Is True

question 113

Multiple Choice

Which of these statements is true?

• A) A low inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management.
• B) A high inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management.
• C) A low inventory turnover ratio or a high days' sales in inventory is a sign of good inventory management.
• D) A high inventory turnover ratio or a high days' sales in inventory is a sign of good inventory management.

Recognize the relationship between planning and organizational success.

Comprehend the distinction between various costs (fixed and variable) and their role in financial planning.

Understand the strategic roles of different organizational archetypes in response to environmental uncertainties.

Analyze the effectiveness of various tools and methods in planning and decision-making.

---

Definitions:

Dividend Payout Ratio

A financial ratio that shows the percentage of a company's earnings paid out to shareholders as dividends.

Gross Margin Percentage

A profitability metric that measures how much of each dollar of revenue is left after deducting the costs of goods sold.

Net Profit Margin Percentage

A financial ratio that indicates the percentage of revenue that exceeds the costs associated with making and selling products or providing services.

Book Value per Share

The value of a company calculated by dividing total shareholder equity by the number of outstanding shares.