Only About ________ Percent of a Typical Business' Inventory Turns

question 28

Multiple Choice

Only about ________ percent of a typical business' inventory turns over quickly.

• A)20
• B)40
• C)60
• D)80

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Definitions:

Net Operating Income

A measure of a company's profitability from its regular business operations, deducting operating expenses from gross income.

Operating Leverage

A measure of how sensitive a company's operating income is to a change in its sales revenue, indicating the proportion of fixed to variable costs.

Net Operating Income

The profit a company generates from its operations, before taxes and interest, from its primary business activities.

Sales Decline

A decrease in the volume or value of sales over a specific period.