Suppose That a Logistics Manager Is Able to Eliminate Some

question 27

Multiple Choice

Suppose that a logistics manager is able to eliminate some unnecessary inventory, which reduces the value of current assets as well as total asset value. What is the corresponding impact on inventory turnover and return on assets?

• A) both inventory turnover and return on assets will increase
• B) inventory turnover increases, while return on assets decreases
• C) inventory turnover decreases, while return on assets increases
• D) both inventory turnover and return on assets will decrease

---

Definitions:

Big Data

Refers to extremely large data sets that may be analyzed computationally to reveal patterns, trends, and associations, especially relating to human behavior and interactions.

Interest-earning Account

A bank account that provides interest payments on the cash deposited into the account.

Annual Rate

The percentage return on an investment or rate of interest per year, not accounting for the compounding of interest within that year.

Annual Withdraw

Annual Withdraw refers to the amount of money that is taken out of an investment or savings account each year.