Inventory Turnover in the Spaces Provided,indicate the Likely Effect of Each of Each

question 22

Essay

Inventory turnover
In the spaces provided,indicate the likely effect of each of the following events or strategies upon the inventory turnover rate.Use the following code letters: I for Increase,D for Decrease,and NE for No Effect.
______ (a)Switched from the LIFO flow assumption to FIFO during a period of rising prices.
______ (b)Dramatically increased advertising expense.
______ (c)Increased the sales price of merchandise that is so popular it is difficult to keep in stock.
______ (d)Implemented internal control procedures to reduce a serious inventory shrinkage problem.
______ (e)Switched from a restrictive credit policy to offering liberal terms to credit customers.

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Definitions:

Circular Reasoning

A logical fallacy in which the conclusion of an argument is used as a premise of the same argument.

Weak Analogy

A flawed argument in which two items being compared are not sufficiently similar in relevant aspects.

Circular Reasoning

A logical fallacy in which the conclusion is supported by premises that assume the conclusion's truth, thus not providing any actual evidence.

Irrelevant Reasoning

Engaging in argument or thought processes that do not logically pertain to or impact the matter at hand.