Dramatic Cost Savings Are Possible When Efficient Transportation and Information

question 95

Multiple Choice

Dramatic cost savings are possible when efficient transportation and information systems can reduce _____ costs.

• A)advertising
• B)personal selling
• C)publicity
• D)inventory

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Definitions:

Operating Cycle

The period it takes for a business to purchase inventory, sell products, and convert the sales back into cash, essentially measuring the time span from buying raw materials to receiving cash from sales.

Inventory Turnover Rate

A measure of how quickly a company sells and replaces its stock of goods within a given period, indicating the efficiency of its inventory management.

Opportunity Cost

The expense associated with foregoing the next most favorable option when a choice is made.