The Inventory Turnover Ratio Used in Measuring Supply Chain Efficiency

question 31

Multiple Choice

The inventory turnover ratio used in measuring supply chain efficiency is found by the ratio of which of the following?

• A) Cost of goods sold/Average aggregate inventory value
• B) Fixed costs/Variable costs
• C) Sales costs/Marketing costs
• D) Cost of goods sold/Cost to sell goods
• E) Operations flow costs/Supplier flow costs

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Definitions:

Tenants by the Entirety

A form of joint property ownership available to married couples, where each owns the entire property and rights of survivorship are included.

Earnest Money

A deposit made to a seller indicating the buyer's good faith, seriousness, and intent to complete the purchase transaction.

Purchase Price

The amount of money that is paid or agreed to be paid by a buyer to acquire ownership of a product or property.

Potential Purchaser

An individual or entity showing interest in buying a product or service, but who has not yet made a purchase decision.