Which of the Following Measures the Length of Time It

question 85

Multiple Choice

Which of the following measures the length of time it takes to acquire, sell and replace inventory?

• A) inventory turnover
• B) number of days' sales in inventory
• C) retail method of inventory costing
• D) gross profit method of inventory costing

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Definitions:

Variability Of Return

Denotes the volatility in the profits or gains from investments over a period.

Risk

The exposure to the potential of loss or damage when the outcome is uncertain.

Risk Aversion

The tendency of investors to prefer lower risk options, avoiding higher risk investments even if they offer potentially higher returns.

Expected Return

The profit or loss an investor anticipates on an investment that has various known or expected rates of return.