A Firm with a Stockturn Rate of 5 Sells Products

question 14

Multiple Choice

A firm with a stockturn rate of 5 sells products that cost it $100,000. Its annual inventory carrying cost is about 20 percent of the inventory value. What is its annual inventory carrying cost?

• A) $5,000
• B) $4,000
• C) $8,000
• D) $20,000
• E) $100,000

---

Definitions:

Labor Force

The labor force consists of all the working-age population who are willing and able to work, including both employed and unemployed individuals.

Agriculture

The practice of cultivating the soil, growing crops, and raising livestock for food, fiber, and other products that sustain human life.

Industrial Market Country

A term not widely used but likely referring to countries with economies driven primarily by the industrial sector, including manufacturing and services.

Birth Rate

A statistical measure showing the number of live births per 1,000 people in a given year, providing insight into population growth trends.