Which of the Following Statements Is Most Consistent with Efficient

question 106

Multiple Choice

Which of the following statements is most consistent with efficient inventory management? The firm has a

• A) low incidence of production schedule disruptions.
• B) below average total assets turnover ratio.
• C) relatively high current ratio.
• D) relatively low DSO.
• E) below average inventory turnover ratio.

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Definitions:

Dependence

A situation in which the condition or fortunes of a person or entity are affected by another.

Centralization

The concentration of control and decision-making authority in a centralized location or group within an organization.

Authority

The capacity to direct, adjudicate, and ensure observance.

Consistency

The quality of achieving a level of performance or behavior that does not vary greatly in quality over time.