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.

---

Definitions:

Theft

The act of stealing, or unlawfully taking someone else's property without their permission with the intent to permanently deprive them of it.

Lock

A mechanism for controlling access, ensuring security by preventing or limiting access to a location or object.

Moral Hazard

A situation where one party in a contract can take risks because they know they will not have to bear the full consequences of their actions.

Health Insurance

A contract between an individual and an insurer to cover part or all of the costs associated with medical care.