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Explain how the inventory turnover ratio and the days' sales in inventory ratio are used to evaluate inventory management.
Testable Prediction
A hypothesis or forecast that can be verified through experimentation or observation.
Hypothesis
A proposed explanation made on the basis of limited evidence as a starting point for further investigation.
Theory
An explanation or set of principles that has been formulated to explain phenomena, often based on general principles independent of the phenomena to be explained.
Correlation
A statistical measure that describes the extent to which two variables change together.
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