Which of the Following Statements Regarding Days Inventory Is Incorrect

question 16

Multiple Choice

Which of the following statements regarding days inventory is incorrect?

• A) Days inventory is much higher for a supermarket than a clothing retailer.
• B) Days inventory is a measure of the average length of time it takes to sell inventory.
• C) Days inventory is a measure of the efficiency of an entity at selling inventory.
• D) All of the above options are incorrect.

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Definitions:

Predictive Validity

The extent to which a score on a scale or test predicts scores on some criterion measure.

Convergent Validity

A measure of validity based on the degree to which a test correlates with other tests that it is theoretically supposed to correlate with.

Emotional Quotient

A measure of a person's ability to recognize, understand, and manage their own emotions and the emotions of others.

Reactivity

The phenomenon wherein individuals modify their behavior in response to the awareness that they are being observed.