A Firm Has an Average Age of Inventory of 101

question 85

Multiple Choice

A firm has an average age of inventory of 101 days, an average collection period of 49 days, and an average payment period of 60 days. The firm's inventory turnover is ________.

• A) 3.2
• B) 4.0
• C) 2.5
• D) 3.6

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Definitions:

High Power

A state or condition of having significant control, authority, or influence over others.

Low Affiliation

A term indicating a reduced concern or need for forming close or supportive relationships with others.

Need for Achievement

A psychological trait that drives individuals to pursue and meet goals or standards of excellence, often motivating behavior in competitive environments.

Moderately Difficult Goals

Targets set for individuals or teams that are challenging yet achievable with effort, often optimizing motivation and performance.