Which of the Following Is True Regarding Markups and Turnover

question 216

Multiple Choice

Which of the following is true regarding markups and turnover?

• A)High markups usually lead to high profits.
• B)Speeding turnover usually decreases profits.
• C)Items sold at low markups (e.g.,20 percent)cannot be profitable.
• D)Depending on the industry,a stockturn rate of 1 or 2 may be quite profitable.
• E)All these answers are correct.

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Definitions:

Rationalizing

The process of attempting to explain or justify behavior or an attitude with logical reasons, even if these are not appropriate.

Underutilizing

Not making the most effective or efficient use of a resource, person, or capability.

Overloading

A situation where an individual or system is given more work or information than can be handled comfortably or efficiently.

Skill Set

A collection of skills and abilities that an individual possesses, which can be applied in various jobs, tasks, or projects.