Which of the following statements is not correct regarding the importance of inventory turnover to a company's profitability?
A. Companies will prefer to have a low inventory turnover rather than a high inventory turnover.
B. A company's profitability is affected by how rapidly inventory sells.
C. 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.
D. A company's profitability is affected by the spread between cost and selling price.
Answer: A
You might also like to view...
Small businesses can file ________ with the SEC if they plan on raising $1 million or less from the public issue of securities
A) Form U-7 B) a registration statement C) an operation agreement D) a certificate of interest
One way to tell a nonessential phrase from an essential one is to think about whether you would pause before and after saying it
Indicate whether the statement is true or false
Ideally, test marketing should follow which stage in the new-product development process?
A. Commercialization B. Business analysis C. Screening D. Limited production E. Product development
Teri borrows $10,000 from USA National Bank to remodel a room in her home. This transaction is subject to
a. no federal law. b. the Consumer Leasing Act. c. the Consumer Product Safety Act. d. the Truth-in-Lending Act.