Which of the Following Statements About Inventory Measures Is Not

question 48

Multiple Choice

Which of the following statements about inventory measures is not correct?

• A)If the inventory turnover ratio increases,the days to sell measure decreases.
• B)The days to sell measure can help managers make ordering decisions for inventory.
• C)A higher inventory turnover ratio indicates that inventory is moving more quickly from purchase to sale.
• D)It is rare for a company with a lower gross profit percentage to have a faster inventory turnover.

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Definitions:

Central Processing Unit

The primary component of a computer that interprets and executes instructions, functioning as the brain of the computer.

Port

A port is a virtual point where network connections start and end. Ports are software-based and managed by a computer's operating system.

Convergence

The trend of blending different technologies, industries, or devices into a unified whole.

Capacity Ranking

The process of ordering devices or systems based on their maximum capability to hold or process data.