Which of the Following Is NOT True About the Inventory

question 109

Multiple Choice

Which of the following is NOT true about the inventory turnover ratio?

• A) It is calculated by dividing inventory by cost of goods sold.
• B) It measures how many times the inventory is turned over into saleable products.
• C) The more times a firm can turn over its inventory, the better.
• D) Too high a turnover or too low a turnover could be a warning sign.

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Definitions:

Behavioral Change

The process of modifying actions, habits, or behaviors to improve health, well-being, or social interactions.

Contingency Contract

A behavior modification technique where an agreement is made between two parties, outlining specific behaviors and the rewards or consequences that follow from those behaviors.

Reinforcements

In behavioral psychology, stimuli which increase the likelihood of a behavior being repeated, can be positive or negative.

Existential Therapies

A group of psychotherapies emphasizing autonomy, freedom, and the search for meaning, focusing on the human condition as a whole.