Products Have a Lower Inventory Turnover and Need Fewer Distribution

question 273

Multiple Choice

products have a lower inventory turnover and need fewer distribution outlets than convenience goods.

• A) Seasonal
• B) Unsought
• C) Specialty
• D) Durable
• E) Shopping

---

Definitions:

Profitability Index

A financial metric used to measure the relative profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.

Present Value

The value now of an amount that will be received in some future period.

Cash Inflows

Money received by a business from various sources, including sales, investments, financing, and more.

Cash Operating Costs

Expenses directly associated with the operation of a business that require cash outlay, including rent, utilities, and payroll.