The Inventory Turnover Rate for a Firm Is 14

question 63

Multiple Choice

The inventory turnover rate for a firm is 14.5 as compared to the relevant industry rate of 13.2. In this case, the firm is

• A) selling its inventory slower than the industry.
• B) underperforming the industry.
• C) averaging less days of sales in inventory than the industry.
• D) generating less sales per dollar of inventory.

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Definitions:

Action

In physiology, refers to the process by which muscles contract and lead to movement, or in a broader sense, any activity initiated by the nervous system.

Destruction

The act of causing so much damage to something that it no longer exists or cannot be repaired.

Separation, Breakdown

The process of dividing or disassembling entities into parts, components or elements, often leading to a detailed analysis or decay.

Loosening

The act of making something less tight, compact, or firm, often resulting in more movement or flexibility.