The Inventory Turnover Is Computed by Dividing the Cost of Goods

question 4

Multiple Choice

The inventory turnover is computed by dividing the cost of goods sold by

• A) beginning inventory.
• B) ending inventory.
• C) average inventory.
• D) number of days in the year.

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Definitions:

Labor-Abundant

Describes an economy or sector that has a high availability of labor relative to capital.

Land-Abundant

A description of a country or region that has a large amount of land available for agriculture or development relative to other inputs.

Urbanized

Characterized by or pertaining to regions that are densely populated with humans and typically have a lot of developed infrastructure.

Heckscher-Ohlin Model

An economic theory that explains international trade in terms of differences in the relative endowments of factors of production among nations, suggesting that countries will export goods that make intensive use of locally abundant factors.