Which of the Following Is the Formula to Calculate a Firm's

question 12

Multiple Choice

Which of the following is the formula to calculate a firm's inventory turnover ratio?

• A)Inventory Turnover = Sales ÷ Inventory
• B)Inventory Turnover = Cost of goods sold ÷ Inventory
• C)Inventory Turnover = Inventory ÷ Current assets
• D)Inventory Turnover = Inventory ÷ Accounts receivables
• E)Inventory Turnover = (Sales - Cost of goods sold) ÷ Inventory

Understand the concept of opportunity cost and how it applies to various decision-making scenarios.

Grasp the principle of marginal analysis and its application in everyday choices.

Recognize that opportunity costs involve both monetary and non-monetary factors.

Identify how opportunity costs influence government and individual spending decisions.

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Definitions:

Producer Surplus

The difference between the amount a producer is willing to accept for a good or service and the actual amount received by them when the good or service is sold.

Total Surplus

A combination of consumer and producer surplus that signifies the overall net advantage to society from the consumption and production of a good or service.

International Trade

involves the exchange of goods and services across international borders or territories.

Import/Export

The exchange of goods, services, and capital between different countries or territories, enhancing global economic interdependence.