An Economic Model

question 20

Multiple Choice

An economic model

• A)always has a mathematical foundation
• B)can never be proven wrong
• C)can be constructed for an individual economic unit but not for the economy as a whole
• D)is a simplification of the real world
• E)can be constructed for the economy as a whole but not for an individual economic unit

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Definitions:

Inventory Turnover

Inventory turnover is a measure of how frequently a company sells and replaces its stock of goods within a certain period, indicating the efficiency of inventory management.

Inventory Management

The process of ordering, storing, using, and selling a company's inventory, which includes both raw materials and finished goods.

Days' Sales

A financial metric that estimates the average time it takes for a company to collect cash from its customers after a sale has been made, often related to inventory turnover.

Receivables

Financial assets representing money owed to an entity by others for goods delivered or services provided on credit.