Which of the Following Actions Would Most Likely Cause the Inventory

question 104

Multiple Choice

Which of the following actions would most likely cause the inventory turnover ratio to increase?

• A)Increasing the average inventory kept on hand.
• B)Maintaining the same average inventory kept on hand and increasing the volume of sales.
• C)Increasing the average inventory kept on hand and increasing the volume of sales.
• D)Maintaining the same average inventory kept on hand and decreasing the volume of sales.

---

Definitions:

Unskilled Labor

Labor that requires no specialized skills, education, or training for its performance.

Productivity Gains

Increases in the amount of output produced per unit of input, reflecting improvements in efficiency, technology, or processes.

Transferability

The ability of an asset to be transferred or converted easily from one individual to another without affecting its value.

Human Capital

A collection of proficiencies, knowledge, or invisible assets owned by individuals that can be leveraged to bring about economic prosperity for themselves, their work environments, or their community.