Which of the Following Is a Result of High Inventory

question 18

Multiple Choice

Which of the following is a result of high inventory turnover?

• A) Improved employee morale
• B) A decrease in the cost of goods sold
• C) An increase in promotions and markdowns
• D) Higher risk of product obsolescence
• E) A decrease in profits

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Definitions:

Supply Chains

A network of individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of raw materials from the supplier to the manufacturer, and ultimately to the end user.

Competent Parties

Individuals or entities that are legally able to enter into a binding contract, having the necessary legal authority and mental capacity.

Legal Subject Matter

The specific theme, topic, or focus of a legal document or discussion, often defining the scope of legal rights and duties.

Offer and Acceptance

The essential components of a valid contract, where an offer is made and then accepted by the other party.