Which of the Following Is Most Likely to Have Contributed

question 64

Multiple Choice

Which of the following is most likely to have contributed to better inventory management?

• A) Stability in the market demand
• B) Stability in the average price level
• C) Perfect forecasting by the firms
• D) Reduced variability in the input costs
• E) Improvements in information technology and communication

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Definitions:

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers, indicating the efficiency of the company's credit and collection policies.

Year 2

A term referring to the second year of a particular time frame, often used in financial and performance analysis.

Acid-Test Ratio

A financial metric used to determine a company's short-term liquidity position by comparing its most liquid assets (excluding inventories) to its current liabilities.

Year 2

Typically refers to the second year in a given context, such as the second year of operations, a financial plan, or a multi-year study.