Pinecrest Company Use the Selected Data from Pinecrest Company's Financial Statements to Statements

question 10

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
-Refer to the data for Pinecrest Company.
Competitors in Pinecrest Company's industry have an average inventory turnover of 20.8 times.Its inventory turnover for 2016

• A)indicates that the company has too little inventory on hand at the end of 2016.
• B)indicates that the company is pricing its products too low.
• C)is equal to the number of days' sales in the company's inventory.
• D)indicates that the market may be reacting to problems in the sales department by reducing demand for the company's products.

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Definitions:

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, typically characterized by a reduction in costs per unit.

High Capital

Refers to a significant amount of financial assets or resources held by individuals, firms, or governments, enabling large investments in projects or ventures.

ATC Curve

The Average Total Cost (ATC) curve in economics represents the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity demanded by consumers at various price levels.