When Comparing Inventory Turnover Ratios,other Things Being Equal

question 61

Multiple Choice

When comparing inventory turnover ratios,other things being equal,

• A) a lower inventory turnover is preferred in order to keep inventory costs low.
• B) a higher inventory turnover is preferred to improve liquidity.
• C) higher inventory turnover results from old or obsolete inventory increasing the inventory balance on the balance sheet.
• D) higher inventory turnover results from an increase in the selling price of the product.

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Definitions:

Food Poisoning

An illness caused by consuming contaminated food, which is typically infectious or toxic in nature.

Random Phenomenon

An event or process in which all the outcomes occur in unpredictable proportions.

Independent

Independent refers to variables or events in statistics and probability that are not affected by each other, meaning the occurrence or change in one does not affect the other's occurrence or value.

Dependent

In statistics, refers to a variable whose values are thought to rely on the effects of other variable(s), typically the outcome in an experiment or study.