The Inventory Turnover Ratio Is Defined As

question 50

Multiple Choice

The inventory turnover ratio is defined as:

• A)The ratio of cost of goods sold to sales
• B)A ratio measuring the sales that are generated per dollar of receivables
• C)A ratio measuring how fast inventory is paid for
• D)A ratio of sales to average inventory

---

Definitions:

Effective Approach

A method or technique that has been proven to lead to the desired outcome or success in achieving specific goals.

Corrective Action

Steps taken to eliminate the causes of an existing nonconformity, defect, or other undesirable situation to prevent recurrence.

Rules and Standards

Defined as established guidelines and criteria used to manage conduct, processes, and procedures within organizations and industries.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates.