Busch, Inc

question 94

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 FIFO (assume rising purchase costs).
• C) Offers its customers an unusually large selection of goods.
• D) Sells unusually popular items.

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Definitions:

Merchandise Trade Balance

The difference between a country's imports and exports of goods.

Tangible Products

Physical items that can be touched, seen, and usually measured, such as books, furniture, and food items.

Finance

The management of large amounts of money, especially by governments or large companies.

Unilateral Transfer

A one-way transfer of money, goods, or services from one country to another, without a direct or equivalent return.