Which of the Following Is Most Consistent with Efficient Inventory

question 42

Multiple Choice

Which of the following is most consistent with efficient inventory management?

• A) a high inventory turnover ratio
• B) a low incidence of production schedule disruptions
• C) a high total assets turnover
• D) a high inventory turnover ratio; a low incidence of production schedule disruptions; and a high total assets turnover

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Definitions:

General Journal

A ledger where double-entry accounting transactions are initially recorded, including details such as date, accounts affected, and amounts.

General Ledger

A comprehensive set of accounts that records all financial transactions of a business, used to prepare financial statements.

Inventory

The total amount of goods and materials a business holds for the purpose of resale or production.

Balance Sheet Column

Part of a financial statement that displays the company's assets, liabilities, and shareholders' equity at a specific point in time.