Dave Murray's Pontiac Dealership Has an Inventory Turnover of 5

question 110

Multiple Choice

Dave Murray's Pontiac dealership has an inventory turnover of 5.What does this figure mean?

• A) The average value of Dave's inventory is five times his sales.
• B) For every $1 Dave spends on inventory, he reaps $5 in sales.
• C) Dave's beginning inventory is five times his ending inventory.
• D) Dave's average inventory is five times greater than his cost of goods sold.
• E) Dave sells his merchandise five times each year.

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Definitions:

Team Members

Individuals who are part of a group working towards a shared objective.

Social Loafing Group

A phenomenon in which individuals in a group reduce their effort because they believe their contribution to the group is not important.

Linking Pin Team

A concept in team dynamics where individuals serve as connectors between different groups or levels within an organization, facilitating communication and coordination.

Quality Circle

A group of workers who voluntarily meet to discuss and propose solutions to workplace problems, focusing on the quality of products or processes.