An Increase in the Inventory Turnover Ratio Is Normally Considered

question 2

Multiple Choice

An increase in the inventory turnover ratio is normally considered to be favourable but could be unfavourable if it means:

• A) inventory is less likely to become obsolete.
• B) liquidity is greater.
• C) the firm not carrying enough inventory to meet its customer's needs.
• D) storage costs of inventory are lower.

---

Definitions:

Imagines

Forms a mental image or concept of something that is not present or has not yet happened.

Target Response

A specific reaction or behavior that is sought after in a particular situation or as a result of a treatment or intervention.

Self-monitoring

The action of observing and recording one's own behaviors, thoughts, or emotions, often used in behavioral therapy or self-improvement contexts.

Target Behavior

A specific behavior that is identified for change or modification in therapeutic or behavior modification contexts.