Which of the Following Ratios Is Also Known as Acid

question 129

Multiple Choice

Which of the following ratios is also known as acid test?

• A) Current Ratio
• B) Debt Ratio
• C) Asset Turnover Ratio
• D) Inventory Turnover Ratio
• E) Quick Ratio

Understand the concept of marginal revenue and its calculation.

Comprehend how to find the price elasticity of demand at different levels of output.

Master the relationship between demand functions and marginal revenue functions.

Apply knowledge of fixed and variable costs to determine profit-maximizing levels of output.

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Definitions:

Inventory Holding Cost

The total cost associated with keeping inventory in stock, including storage, insurance, taxes, depreciation, and opportunity costs.

Forward Buying

A procurement strategy where a company purchases goods in advance to take advantage of favorable pricing or to hedge against future price increases and supply shortages.

Peak Period

Peak period denotes the time of highest demand in a cycle, where operations face maximum stress due to increased consumer activity.

Demand Pattern

The trend or repetitive sequence observed in consumer demand over a certain period, which can be predictable or may vary seasonally, cyclically, or irregularly.