Henderson Corporation Is a Supplier of Alloy Ball Bearings to Auto

question 12

Multiple Choice

Henderson Corporation is a supplier of alloy ball bearings to auto manufacturers in Detroit. Because of the specialized manufacturing process employed, considerable work-in-process and raw material inventories are created. The average inventory levels are $1,152,000 and $2,725,000, respectively. In addition, finished goods inventory is $3,225,000, and sales (at cost) for the current year are expected to be about $24 million. The inventory turnover that Henderson Corporation is currently expecting is:

• A) less than 2.0.
• B) greater than 2.0 but less than 2.5.
• C) greater than 2.5 but less than 3.0.
• D) greater than 3.0.

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Definitions:

Trace Decay Theory

A theory of memory that proposes that memories leave a trace in the brain which fades over time unless it is actively retrieved.

Proactive Inhibition

The decrease in the ability to learn new information because previously learned information interferes with the new learning.

Retroactive Inhibition

The phenomenon where newer information interferes with the ability to recall older information.

Interference

A phenomenon where one's ability to learn or recall information is hindered by either the presence or the processing of other information.