Keeping Inventory Levels Too High Costs Money,while Running Out of It

question 102

Multiple Choice

Keeping inventory levels too high costs money,while running out of it causes _____ to suffer.

• A)customers
• B)workers
• C)sales
• D)capacity

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Definitions:

Profit Margin

A financial ratio that shows the percentage of revenue that surpasses the cost of goods sold, indicating the financial health and profitability of a business.

Net Working Capital

A measure of a company's short-term liquidity, calculated as current assets minus current liabilities.

Turnover Rate

The rate at which a company hires and separates employees, or the rate at which inventory or assets are replaced through sales.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor costs.