Which Statement Is True

question 57

Multiple Choice

Which statement is true?

• A)The inventory period increases as the inventory turnover rate increases.
• B)The length of the inventory period depends on the length of the cash cycle.
• C)The inventory period is the average number of days a firm holds inventory on its shelves.
• D)The inventory period is equal to the operating cycle minus the accounts payable period.
• E)The inventory period has no effect on the cash cycle.

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Definitions:

Plant Manager

An individual responsible for overseeing the operations, management, and success of a manufacturing or production facility.

Task Strategy

The plan or approach adopted to accomplish a specific task or objective effectively.

Direction of Attention

The focus or concentration of mental effort on a particular object, task, or activity.

Persistence

A personal quality that reflects the ability to continue steadfastly or firmly in some action or path, despite difficulties or opposition.