Which of the Following Scenarios Is Consistent with an Increasing

question 87

Multiple Choice

Which of the following scenarios is consistent with an increasing cost of goods sold to sales percentage and increasing inventory turnover?

• A) Firm raises prices to increase its gross margin but inventory sells more slowly.
• B) Weak economic conditions lead to reduced demand for a firm's products, necessitating price reductions to move goods.
• C) Strong economic conditions lead to increased demand for a firm's products, allowing price increases.
• D) Firm shifts its product mix toward lower margin, faster moving products.

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Definitions:

Affiliation Needs

The human desire to belong to a group, be accepted, and maintain relationships with others, driving social interactions.

Security Needs

Basic human requirements for safety and stability, including physical safety, employment, resources, health, and property, as essential for well-being.

Physiological Needs

Basic human necessities required for survival, such as food, water, shelter, and sleep; the foundational level in Maslow's hierarchy of needs.

Affiliation Needs

The inherent human desire to belong to a group or form close and interpersonal relationships.