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:

Public Good

A good that is non-excludable and non-rivalrous, meaning it can be consumed by many people without diminishing its availability to others.

National Defense

The protection and defense of a country against foreign threats and aggression, typically through military means.

Marginal Cost

The cost of producing one additional unit of a good.

Public Good

Goods that are non-excludable and non-rivalrous, meaning they can be used by multiple people simultaneously without diminishing availability to others.