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:

Profit-maximizing

The strategy or point at which a business makes the highest amount of profit at a given level of production, taking into account its cost structure.

Output

The total amount of goods and services produced by an economic system, company, or machine within a specific period.

Legal Barriers

Regulations or policies implemented by governing bodies that limit or control the entry of new firms into certain markets or industries.

Industry

The segment of the economy concerned with production, processing, and preparation of goods and services, often categorized into sectors like manufacturing, services, and agriculture.