Other Things Remaining the Same, If the Average Aggregate Inventory

question 49

Multiple Choice

Other things remaining the same, if the average aggregate inventory value goes down, then

• A) inventory turnover ratio and weeks of supply will both go down.
• B) inventory turnover ratio will go down, but the weeks of supply will stay the same.
• C) inventory turnover ratio and weeks of supply will both go up.
• D) inventory turnover ratio will go up, but weeks of supply will go down.
• E) inventory turnover ratiowill stay the same, but weeks of supply will go down.

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Definitions:

Trustee

With respect to bonds, an organization that ensures compliance with the conditions set forth in the indenture. With respect to bankruptcy, a person who administers the bankrupt organization to ensure funds are properly handled.

Restructures Capital

The process of altering the composition or structure of a company's debt and equity mix, often to enhance financial stability or efficiency.

Business Operations

The day-to-day activities involved in managing a business, ensuring it functions efficiently and profitably.

Management Reorganizes

Refers to the process of changing the structure or allocation of responsibilities within a company's management team, aiming at increasing efficiency or meeting new strategic goals.