Which Activity Is Most Apt to Reduce the Inventory Period

question 71

Multiple Choice

Which activity is most apt to reduce the inventory period for a grocery store?

• A)Replacing slow-moving items with faster-selling products
• B)Replacing fresh foods with canned goods
• C)Decreasing the amount of discounts offered to customers
• D)Increasing the amount of inventory on hand
• E)Decreasing the number of times the inventory turns over per year

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Definitions:

Non-normal Cash Flows

Cash flow patterns that do not match standard inflow and outflow models, often irregular in amount and timing.

Initial Costs

The upfront expenditures associated with beginning a project, such as fees, equipment purchases, and setup expenses.

MIRR

Modified Internal Rate of Return; a financial measure that adjusts the IRR to reflect the project's cost of capital and reinvestment rate, providing a more realistic view of the project's profitability.

Consumer Price Index

A metric that assesses the weighted average cost of a collection of consumer goods and services, serving as a gauge for inflation levels.