The Inventory Turnover Rate for a Firm Is 14

question 32

Multiple Choice

The inventory turnover rate for a firm is 14.5 as compared to the relevant industry rate of 13.2. In this case, the firm is

• A) selling its inventory slower than the industry.
• B) underperforming the industry.
• C) averaging fewer days of sales in inventory than the industry.
• D) generating fewer sales per dollar of inventory.

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Definitions:

Power To Revoke

The legal authority to cancel or withdraw a decision, offer, or agreement.

Promises

Declarations or assurances that one will do something or that a particular thing will happen.

Subjective Intent

A legal concept focusing on what an individual personally intended to happen or believed would happen, rather than the objective outcome of their actions.

Contract

A legally enforceable agreement between two or more parties with mutual obligations.