Which of the Following Statements Is Most Consistent with Efficient

question 125

Multiple Choice

Which of the following statements is most consistent with efficient inventory management? The firm has a

• A) low incidence of production schedule disruptions.
• B) below average total assets turnover ratio.
• C) relatively high current ratio.
• D) relatively low dso.
• E) below average inventory turnover ratio.

---

Definitions:

Employer Pension Costs

Expenses incurred by employers to fund retirement benefit plans for their employees.

Direct Labor Hour

A direct labor hour measures the actual time spent by workers directly involved in the production of goods or services, used for costing and operational efficiency.

Insurance Costs

Expenses associated with purchasing insurance policies to protect against risks.

Straight-line Depreciation

A method of allocating an asset's cost evenly across its useful life.