The Number of Times an Intermediary's Average Inventory Is Sold

question 17

Multiple Choice

The number of times an intermediary's average inventory is sold in a year is called the:

• A) stockturn rate.
• B) asset factor.
• C) inventory ratio.
• D) markup ratio.
• E) ROI (return on inventory).

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Definitions:

Overhead Costs

Expenses related to the day-to-day operations of a business that are not directly tied to the creation of a product or service.

Volume Variance

A financial term that represents the difference between the budgeted and actual volume of production, affecting costs and operational efficiency.

Volume Variance

The difference between the budgeted volume of production or sales and the actual volume, affecting revenue or costs.

Fixed Overhead

Costs that remain relatively constant regardless of the level of production or business activity, such as rent, salaries, and utilities.