Which of the Following Statements Is Correct in Regard to the Importance

question 67

Multiple Choice

Which of the following statements is correct in regard to the importance of inventory turnover to a company's profitability?

• A)Most companies prefer to have a low inventory turnover than a high inventory turnover.
• B)It is sometimes more desirable to sell a large amount of merchandise with a small amount of gross margin than a small amount of merchandise with a large amount of gross margin.
• C)A company's profitability is affected by how rapidly inventory sells as well as by the spread between cost and selling price.
• D)Both B and C are correct.

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Definitions:

Retribution

The infliction of punishment or penalty in response to wrongdoing, often seen as a form of justice.

Personal Mistakes

Errors or poor decisions made by an individual, often leading to learning opportunities.

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The degree to which a communication channel conveys information effectively, including verbal, non-verbal, and contextual cues.

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The belief in one's own or a specific method's ability to achieve a goal or produce a desired outcome.