Suppose That a Logistics Manager Is Able to Eliminate Some

question 30

Multiple Choice

Suppose that a logistics manager is able to eliminate some unnecessary inventory,which reduces the value of current assets as well as total asset value.What is the corresponding impact on inventory turnover and return on assets?

• A)Both inventory turnover and return on assets will increase
• B)Inventory turnover increases,while return on assets decreases
• C)Inventory turnover decreases,while return on assets increases
• D)Both inventory turnover and return on assets will decrease

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Definitions:

Discouraged Workers

Individuals not currently looking for work because they believe no jobs are available for them.

Adult Population

Individuals within a specified area or country who are above the age at which one legally becomes an adult, often considered for labor force and demographic analyses.

Labor Force

The total number of people who are available to work, including both the employed and those seeking employment.

Unemployment Rate Decrease

A reduction in the percentage of the labor force that is unemployed and actively seeking employment.