The Corner Hardware Has Succeeded in Increasing the Amount of Goods

question 59

Multiple Choice

The Corner Hardware has succeeded in increasing the amount of goods it sells while holding the amount of inventory on hand at a constant level.Assume that both the cost per unit and the selling price per unit also remained constant.This accomplishment will be reflected in the firm's financial ratios in which one of the following ways?

• A)decrease in the inventory turnover rate
• B)decrease in the net working capital turnover rate
• C)no change in the fixed asset turnover rate
• D)decrease in the day's sales in inventory
• E)no change in the total asset turnover rate

Recognize the components and purpose of a production budget in a manufacturing setting.

Describe how budgets are related to an entity’s strategic objectives and financial planning.

Understand the distinction between different types of costs (fixed, variable, mixed) and their characteristics.

Comprehend how costs behave with changes in the level of activity (relevant range, variable costs per unit, and fixed costs per period).

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