Return on Inventory Is Calculated Using Which of These Formulas

question 5

Multiple Choice

Return on Inventory is calculated using which of these formulas?

• A) Total number of units on hand ÷ Average daily units used
• B) Cost of goods sold ÷ Average inventory
• C) Net income ÷ Inventory
• D) (Total book value - Observed value) ÷ Inventory

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Definitions:

Creative Behavior

Involves doing things at work that are innovative and that provide some value for the organization.

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act in certain ways based on their expectations of outcomes and the attractiveness of those outcomes.

Interval Schedules

Are partial reinforcement schedules in which behavior is reinforced as a function of the passage of time—for example, rewarding someone every 10 minutes as long as they were exhibiting desired behavior.

Ratio Schedules

In the context of behavioral psychology, it's a reinforcement strategy where a response is reinforced after a specific number of responses.