In Comparison of 2014 to 2013 Performance,Weir Company's Inventory Turnover

question 24

Essay

In comparison of 2014 to 2013 performance,Weir Company's inventory turnover decreased substantially,although sales and inventory amounts were essentially unchanged.
Required:
Which of the following statements best explains the decreased inventory turnover ratio? Explain your answer choice.
a.Cost of goods sold increased.
b.Gross profit percentage increased.
c.Accounts receivable turnover decreased.
d.Total asset turnover decreased.

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Definitions:

Standard Errors

Standard errors measure the statistical accuracy of an estimate, indicating the variability of sampling distributions of a statistic.

Sample Means

The arithmetic average of a set of values chosen from a larger population for the purpose of statistical analysis.

Process Control

Techniques and methods used to monitor, manage, and adjust processes to ensure they operate within desired parameters and produce outputs of consistent quality.

Assignable Variation

Fluctuations in a process resulting from concrete causes, as opposed to unpredictable variation.