Match These Terms to Their Correct Definition

question 184

Multiple Choice

Match these terms to their correct definition.
-length of time required to sell inventory to customers

• A)accounts receivable turnover ratio
• B)cash ratio
• C)gross profit percentage
• D)inventory turnover ratio
• E)net profit margin percentage
• F)operating margin percentage
• G)quick ratio
• H)total payout ratio

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Definitions:

Fixed Costs

Costs that do not change with the amount of goods or services produced over the short term.

Fixed Assets

Long-term tangible assets held for business use and not expected to be converted into cash in the upcoming fiscal year, such as buildings, machinery, and equipment.

Variable Costs

Costs that vary directly with the level of production or volume of services provided, including materials and labor, contrasting with fixed costs.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.