The Ratio That Measures How Many Times a Company Replenishes

question 64

Multiple Choice

The ratio that measures how many times a company replenishes its inventory in a year is the:

• A) Asset turnover ratio.
• B) Accounts receivable turnover ratio.
• C) Inventory turnover ratio.
• D) Days to collect ratio.

---

Definitions:

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less costly alternatives.

Higher Wage

Refers to an increase in the amount of money that an employee receives for performing one hour or another standard unit of work.

Leisure Time

Free time that an individual can spend away from work, chores, and other compulsory activities, often used for relaxation or hobbies.

Labor Supply Curve

A visual diagram illustrating how the quantity of labor supplied is influenced by changes in the wage rate.