The Higher the Inventory Turnover Measure,the

question 58

Multiple Choice

The higher the inventory turnover measure,the:

• A)longer it takes a firm to sell its inventory.
• B)faster a firm collects payment on its sales.
• C)faster a firm sells its inventory.
• D)lesser the amount of inventory held by a firm.
• E)greater the amount of inventory held by a firm.

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Definitions:

Price-Quantity Combination

A specific point on a supply or demand curve at which a certain quantity of goods is supplied or demanded at a particular price.

Independent Plans

are strategies or courses of action devised and executed autonomously by an individual, organization, or country without external control or influence.

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a certain period.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price in a given time period.