Busch,IncIs a Successful Company,but Has a Lower Inventory Turnover Rate

question 42

Multiple Choice

Busch,Inc.is a successful company,but has a lower inventory turnover rate than the industry average.Of the following,the most likely explanation is that Busch:

• A)Has a just-in-time inventory system.
• B)Uses LIFO (assume rising purchase costs).
• C)Offers its customers an unusually large selection of merchandise.
• D)Sells unusually popular items.

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Definitions:

Director's Control

The authority and power held by a company's board director(s) to guide and manage the organization's operations and policies.

Report as to Affairs

A document that provides a financial snapshot of a company's assets and liabilities, typically used in insolvency proceedings.

Secured Creditors

Creditors who have a legal right or interest, typically through a lien, in the debtor's assets to secure repayment of their credit.

Charge

An expense or cost applied to a person or entity, often relating to financial transactions.