Smith Company Has a Low Number of Days in Inventory

question 89

Multiple Choice

Smith Company has a low number of days in inventory.This indicates that:

• A) their inventory sales are producing low profits.
• B) the cost of inventory is very high.
• C) the company has a low gross profit percentage.
• D) their inventory is turning over rapidly.

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Definitions:

Y-Intercepts

The points where a line or curve intersects the y-axis on a graph.

X-Intercepts

The points where a graph intersects the x-axis, representing the values of x when the function or equation equals zero.

Graph

An illustration showing the web of interactions or relationships between multiple elements using unique markers such as dots, lines, and bars.

Perpendicular

Lines or planes that intersect at a right angle (90 degrees).