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:

Identity Cohesion

The feeling of unity, continuity, and consistency in a person's identity over time despite various external changes.

Role Confusion

refers to Erikson's theory on the struggle to find one's own identity, where the individual may be unsure about themselves or their future.

Moratorium

A period of delay or suspension of activity; in psychology, it often refers to a stage of adolescent identity exploration.

Consistency

The quality of being uniform, reliable, or stable over time, often applied to a person's behavior or attitudes.