Which of the Following Is Used to Analyze the Efficiency

question 72

Multiple Choice

Which of the following is used to analyze the efficiency and effectiveness of inventory management?

• A) inventory turnover only
• B) number of days' sales in inventory only
• C) both inventory turnover and number of days' sales in inventory
• D) neither inventory turnover or number of days' sales in inventory

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Definitions:

Financial Statements

Formal records that outline the financial activities and condition of a business, entity, or individual.

Net Income

The remaining earnings of a business after subtracting all outgoings and tax liabilities from its total earnings.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and equity at a specific point in time, giving insight into its financial position.

Income Statement

A financial statement that reports a company's financial performance over a specific period, including revenues, expenses, and net income.