All of the Following Are Conditions Which Are Favorable to the Formation

question 31

Multiple Choice

All of the following are conditions which are favorable to the formation of cartels except

• A)the existence of a small number of firms.
• B)geographic proximity of firms.
• C)homogeneity of the product.
• D)easy entry into the industry.

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Definitions:

Average Sale Period

The average time it takes for a company to convert its inventory into sales, often used in analyzing a company's efficiency.

Cost of Goods Sold

The direct costs attributable to the production of goods sold by a company, including the cost of the materials and labor directly used to create the good.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Inventory Turnover

A ratio indicating how many times a company has sold and replaced inventory during a certain period of time.