A High Inventory Turnover Ratio Indicates That ______

question 82

Multiple Choice

A high inventory turnover ratio indicates that ______.

• A)the firm is converting its inventory to profits faster
• B)potential for product obsolescence is high
• C)inventory is not being replenished
• D)potential for product theft and damage is high

---

Definitions:

Operationally Defining

The process of defining a concept or variable in terms of the specific procedures or measures used to produce or manipulate it.

Curvilinear Relationship

A type of relationship between two variables where the change in one variable does not result in a linear change in another, often depicted as a curved graph.

Negative Relationship

A type of correlation where an increase in one variable is associated with a decrease in another variable.

No Relationship

Outcome of research in which two variables are not related; changes in the first variable are not associated with changes in the second variable.