It Costs ________ Times as Much to Acquire a New

question 3

Multiple Choice

It costs ________ times as much to acquire a new customer as it does to make a sale to an existing customer.

• A)two
• B)five
• C)eight
• D)ten

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Definitions:

Inventory Period

The duration of time it takes for a company to sell its inventory and convert it into sales, often measured in days or months.

Slow-selling Merchandise

Items in inventory that move or sell at a slower pace than anticipated, often leading to excess stock and markdowns.

Cash Cycle

Refers to the amount of time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.

Selling Inventory

The process of selling goods and products that a company holds in stock, often a major revenue source.