A High Inventory Turnover Might Signal

question 41

Multiple Choice

A high inventory turnover might signal

• A)A problem with old and obsolete inventory.
• B)An overstock of inventory.
• C)Poor inventory management.
• D)None of these ans choices are correct.

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Definitions:

Recessionary Gap

A situation in which the real GDP of an economy is lower than its potential GDP at the full employment level, indicating underutilized resources.

Actual Output

Actual output refers to the real GDP or the total value of all goods and services produced in an economy at a given time, contrasting with potential output.

Expected Price Level

The anticipation or forecast of future prices across an economy, affecting consumer and business decisions.

Long-Term Contracts

Agreements that extend over a significant period of time, often involving commitments to buy or sell goods or services or to provide employment.