A Low Number of Days in Inventory May Indicate All

question 56

Multiple Choice

A low number of days in inventory may indicate all of the following except

• A)Sales opportunities may be lost because of inventory shortages.
• B)There is less chance of having obsolete inventory items.
• C)The company has fewer funds tied up in inventory.
• D)Management has achieved the best balance between too much and too little inventory levels.

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Definitions:

Dominant Firm

A company that has a large market share within its industry, giving it significant market power and the ability to influence market conditions.

New Product Innovation

The process of bringing a new product or service to the market, aiming to meet customer needs or open new markets.

Copies

Replicas or reproductions of original items, documents, or works.

Legal Protection

A system of laws and regulations designed to safeguard the rights and interests of individuals and entities.