Regarding the Measures of Inventory Managing Efficiency, Identify the Most

question 51

Multiple Choice

Regarding the measures of inventory managing efficiency, identify the most appropriate answer. (Select all that apply.)

• A) Total average value of inventory is equal to the selling price multiplied by finished goods inventory.
• B) Inventory turn is the annual cost of goods sold multiplied by average inventory.
• C) Days of supply is the inverse of inventory turns × 365.
• D) Inventory turn is the annual cost of goods sold divided by average inventory.

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Definitions:

Information Gathering

The process of collecting data and information from various sources to make informed decisions or understand situations better.

Principal-agent Relationships

A scenario where one party (the principal) delegates work to another party (the agent), who performs that work on behalf of the principal.

Minimize Profits

The strategy of reducing profits to a minimum, possibly for tax advantages, ethical reasons, or for future strategic positioning.

Maximize Them

The process of making the most or best of certain resources, outcomes, or situations to achieve the highest possible benefit or efficiency.