A Firm That Is Efficient in Inventory Management Will Have

question 42

Multiple Choice

A firm that is efficient in inventory management will have

• A) a high inventory turnover ratio and a low days sales in inventory ratio.
• B) a low inventory turnover ratio and a low days sales in inventory ratio.
• C) a high inventory turnover ratio and a high days sales in inventory ratio.
• D) a low inventory turnover ratio and a high days sales in inventory ratio.

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Definitions:

Mode

The number that occurs most often in a collection of data.

Weighted Mean

An average in which each data point contributes to the final mean with a weight that reflects its importance or frequency.

Central Tendency

A statistical measure that identifies a single value as representative of an entire distribution, with the mean, median, and mode being common examples.

Variability

A statistical measure of the dispersion of data points in a data series around the mean.