Which of the following indicates a positive trend for inventory management? A. Increasing number of days sales
Question:
Which of the following indicates a positive trend for inventory management?
A. Increasing number of days’ sales in inventory ratio
B. Increasing inventory turnover ratio
C. Increasing cost of goods sold
D. Increasing sales revenue
Step by Step Answer:
Inventory turnover ratio identifies the number of times the inventory is used in a particular period ...View the full answer
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
Related Video
Inventory turnover is a key metric that helps businesses evaluate the efficiency of their operations. A high turnover ratio is generally considered positive, indicating that the company is effectively selling its inventory and making efficient use of its resources. On the other hand, a low turnover ratio may indicate issues such as overstocking or slow sales and may require further examination to identify and address the underlying causes. Businesses use this ratio to make decisions about inventory levels, production schedules, and pricing strategies. It also helps businesses to identify areas where they may need to make improvements, such as reducing lead times for production or optimizing sales and marketing efforts. Additionally, inventory turnover is used by investors and analysts as a key performance indicator to evaluate the financial health and growth potential of a company.
Students also viewed these Business questions
-
Which of the following matrices are positive definite? Negative definite? Indefinite? (a) (b) 035 053
-
Which of the following goods or services would be most likely to be subject to (1) external economies of scale and (2) dynamic increasing returns? Explain your answers. a. Software tech-support...
-
Which of the following goods are scarce? a. Garbage b. Salt water in the ocean c. Clothes d. Clean air in a big city e. Dirty air in a big city f. A public library
-
Tri-State Railroad Company organizes its three divisions, the Southeast (SE), East (E), and South (S) regions, as profit centers. The chief executive officer (CEO) evaluates divisional performance,...
-
For the demand curve shown, find the total amount of consumer surplus that results in the gasoline market if gasoline sells for $2 per gallon.
-
The favored type of negotiation that generally provides the best results is called what?
-
Gavin Jones is inquisitive and determined to learn both the theory and the application of investment theory. He pressed the tree farmer for additional information and learned that it was possible to...
-
Arrow Distributing Corp. (See Table) likes to track inventory by using weeks of supply as well as by inventory turnover. (a) What is its weeks of supply? (b) What percent of Arrows assets are...
-
Explain the concept and value of benchmarking, and define the differences between internal and external benchmarking. Describe at least 1 internal and 1 external benchmark that risk managers can use...
-
An operations manager is trying to determine a production plan for the next week. There are three products (say, P, Q, and Q) to produce using four machines (say, A and B, C, and D). Each of the four...
-
During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes...
-
During the current year, Alanna Co. had the following transactions pertaining to its new office building. A. What should Alanna Co. record on its books for the land? The total cost of land includes...
-
JMK owns a distribution factory that it uses to store its inventory. On 1 January 20X7, the factory was sold to a large REIT for $8,700,000. The factory had an original cost of $16,000,000 and...
-
Combined separating and throttling calorimeter is used to find out dryness fraction of steam, following readings were taken: Main pressure \(=12\) bar abs. Mass of water collected in separating...
-
Suppose that you were to tie a heavy metal washer to one end of a string, hold the string by the other end, and whirl it in a horizontal circle above your head. Pay close attention to where your hand...
-
As you read about the various personal decision styles, did you put yourself into any one of the categories? To get a feel for what the decision style inventory reveals about your personal decision...
-
Steam at \(1,000 \mathrm{kPa}\) and \(300^{\circ} \mathrm{C}\) enters an engine and expands to \(20 \mathrm{kPa}\). If the exhaust steam has a dryness fraction of 0.9 , make calculations for the drop...
-
Are you a good listener, a really good listenerone who understands exactly what someone else is saying to you? Most of us tend to think that we are much better than we really are when it comes to...
-
On a three-dimensional coordinate system with variables x, y, and z, the standard equation of a plane is in the form ax + by + cz = d. Find the intersection of the three planes described by 3x + y +...
-
A bar of length = 1 has one fixed and one free end and stiffness function c(x) = 1 - x. Find the displacement when subjected to a unit force. Pay careful attention to the boundary condition at the...
-
In the current year, Jack, Karen, Latoya, and Marc transfer the following property to Giant Corporation (an existing corporation), which is owned equally by the four transferors. Jack transfers land...
-
Linda and Cynthia decide to form a corporation in a transaction that meets the requirements of Sec. 351. Linda transfers machinery she has held for several years with a basis of $45,000 and a fair...
-
In a transaction that meets the requirements of Sec. 351, Matt transfers to Hill Corporation land with a $600,000 adjusted basis and a $1,000,000 FMV that was used in his business. The land is...
-
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March. Submit Date March 1 March 5 March 9 March 18 March 25 March 29...
-
Wilmington Company has two manufacturing departments-Assembly and Fabrication. It considers all of its manufacturing overhead costs to be fixed costs. The first set of data that is shown below is...
-
What are the fundamental differences between preemptive and cooperative multitasking in an operating system, and in which scenarios would each be most effective ?
Study smarter with the SolutionInn App