All but One of the Following Is True About the Inventory

question 73

Multiple Choice

All but one of the following is 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 turnover the inventory, the better.
• D) Too high a turnover or too low a turnover could be a warning sign.

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Definitions:

Open-door Policy

A management practice that encourages open and direct communication between employees and their supervisors or managers.

Formal Grievance Procedure

A systematic process provided by employers for employees to formally raise and resolve workplace disputes or complaints.

Market Penetration Rate

A measure used to determine the extent to which a product or service is known and used by customers within a particular market.

Videoconference

A technology that allows people in different locations to hold face-to-face meetings without having to move to a single location physically.