The Sales-To-Inventory Ratio

question 20

Multiple Choice

The sales-to-inventory ratio:

• A)is superior to the inventory turnover ratio.
• B)as a determination of financial performance, is good comparison tool.
• C)is technically inferior to other commonly used ratios.
• D)was developed by the Dupont Corporation and is satisfactory when used to make comparisons between the firm and the industry as a whole.

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Definitions:

Product Innovation

The process of creating new or significantly improved products, enhancing their features, functionality, or design to meet consumer needs or open new markets.

Product Positioning

The process of determining the place a product occupies in consumers' minds relative to competing offerings, focusing on perceptions, impressions, and benefits.

Cost-Volume-Profit Analysis

An accounting methodology used to estimate the impact of varying levels of costs and volume on operational profit.

Manufacturing Firm

A business that produces goods in large quantities using raw materials, components or parts, and machinery, often within a factory setting.