Which of the Following Statements About Inventory Turnover Is Most

question 60

Multiple Choice

Which of the following statements about inventory turnover is most appropriate?

• A) Companies generally strive to have the highest possible inventory turnover ratio.
• B) A high ratio indicates the company is having trouble selling its inventory.
• C) The most profitable turnover ratio may not necessarily be the highest.
• D) A low ratio generally means the company is not keeping enough inventory on hand.

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Definitions:

Consecutive Steps

Refers to a sequence of steps or processes that follow one another in a direct and uninterrupted order.

Production Manager

A role responsible for overseeing the production process of a company, ensuring efficiency, quality control, and meeting production targets.

Value Creation

The process through which businesses or organizations produce goods or services that are worth more than the cost of resources used, ultimately benefiting customers, stakeholders, or society.

Value Chain Management

The strategic analysis and optimization of the series of steps that a company takes to deliver a product or service to the market.