Managing inventory turnover involves balancing which of the following consideration(s) in setting the optimum level of inventory and, thus, the rate of inventory turnover?
a. For a given amount of gross margin on the goods, firms prefer to sell as many goods as possible with a minimum of assets tied up in inventories.
b. An increase in the rate of inventory turnover between periods indicates reduced costs of financing the investment in inventory.
c. Management does not want to have so little inventory on hand that shortages result in lost sales.
d. Increases in the rate of inventory turnover caused by inventory shortages could signal a loss of customers.
e. All of the above.
E
You might also like to view...
When initially recording the cost of land purchased, most companies use the current value
a. True b. False Indicate whether the statement is true or false
Which statement about the correlation coefficient, r, is true?
A) The calculation of r assumes that X and Y are metric variables whose distributions have the same shape. B) The correlation coefficient computed for a population is denoted by ?(rho). C) Data obtained by using rating scales with a small number of categories tends to deflate r. D) All of the statements are true.
Constituents develop two different kinds of contracts with their agents. What are those two types of contracts?
What will be an ideal response?
A trustee has a fiduciary responsibility to manage the trust in the best interests of the beneficiary
Indicate whether the statement is true or false.