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:

Condition Of Uncertainty

A situation where there is a lack of certain knowledge or predictability about future events, often discussed in decision-making contexts.

International Expansion

The process by which a company extends its business operations into new markets across national borders.

Intuitive Judgment

The ability to make decisions or draw conclusions in the absence of explicit reasoning or comprehensive analysis, often based on experience and gut feelings.

Condition Of Risk

A situation or an environment where there is a potential for loss or damage, and outcomes are uncertain.