Other Things Remaining the Same, If the Average Aggregate Inventory

question 3

Multiple Choice

Other things remaining the same, if the average aggregate inventory value goes down, then

• A)Inventory turnover ratio and weeks of supply will both go down.
• B)Inventory turnover ratio will go down, but the weeks of supply will stay the same.
• C)Inventory turnover ratio and weeks of supply will both go up.
• D)Inventory turnover ratio will go up, but weeks of supply will go down.
• E)Inventory turnover ratio stay the same, but weeks of supply will go down.

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Definitions:

Income Tax

A tax imposed by the government on the income generated by businesses and individuals within their jurisdiction.

Sales Agent

An individual or entity authorized to sell or negotiate the sale of goods or services on behalf of another party, known as the principal.

Domestic Corporations

Businesses incorporated within a particular state or country, subject to its laws and regulations.

Qualify to do Business

The process by which a company meets the legal requirements to conduct business in a jurisdiction other than where it was established.