Which of the Following Scenarios Is Consistent with an Increasing

question 87

Multiple Choice

Which of the following scenarios is consistent with an increasing cost of goods sold to sales percentage and increasing inventory turnover?

• A) Firm raises prices to increase its gross margin but inventory sells more slowly.
• B) Weak economic conditions lead to reduced demand for a firm's products, necessitating price reductions to move goods.
• C) Strong economic conditions lead to increased demand for a firm's products, allowing price increases.
• D) Firm shifts its product mix toward lower margin, faster moving products.

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Definitions:

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