Which of the Following Is Not an Inventory Performance Measure

question 39

Multiple Choice

Which of the following is not an inventory performance measure?

• A) average days of inventory turnover
• B) average aggregate inventory
• C) average cycle service level
• D) All of the above are inventory performance measures.

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Definitions:

Output Effect

The impact on total revenue when a firm alters its production level, influencing the quantity of goods sold and potentially the market price.

Fixed Proportions

A production process in which inputs are used in a constant ratio to each other, with no substitution possible between the inputs.

Labor Productivity

An indicator of economic efficiency that evaluates the quantity of goods and services produced (output) relative to the total hours spent in producing those goods and services.

Complementary Resources

Resources used together in production that increase each other's effectiveness.