A Rising Balance in the Inventory Account and a Falling

question 36

Multiple Choice

A rising balance in the inventory account and a falling inventory turnover ratio implies that the inventory build up is occurring because:

• A) goods are not selling as fast as they were in the past.
• B) the company is expecting to sell more in the future.
• C) goods are selling, but it is taking longer to collect payment.
• D) goods cannot be shipped fast enough.

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Definitions:

Formally Assigned

Being officially allocated or designated a specific role, duty, or task by an authoritative body or person within an organization.

Behavioral Perspective

Is an approach in psychology and organizational studies focusing on understanding and influencing behavior through observation and learning theories.

Participative Leadership

A leadership style where the leader involves team members in decision-making processes.

Achievement-oriented Leadership

Achievement-oriented leadership is a management style focused on setting challenging goals, emphasizing high standards, and encouraging continuous improvement among team members.