In a System Called Vendor-Managed Inventory, Companies Shift the Ordering

question 103

True/False

In a system called vendor-managed inventory, companies shift the ordering responsibility to their suppliers.

---

Definitions:

Working Capital

A measure of a company’s liquidity; computed as current assets minus current liabilities.

Note Payable

A written agreement in which one party agrees to pay another party a definite sum of money at a future date or on demand.

Current Assets

Assets likely to be converted into cash, sold, or consumed within a year or the normal operating cycle of the business.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a business.