Asked by
Riece Givens
on Dec 16, 2024
Verified
________ is the financial ratio that measures the ability of a firm to move its inventory quickly.
A) Markup
B) Selling price
C) Return on investment
D) Stock turn rate
E) Markdown
Stock Turn Rate
A measure of how quickly inventory is sold and replaced over a given period, indicating the efficiency of inventory management.
Markup
An additional amount incorporated into the buying price of products to compensate for running expenses and gain profit.
Selling Price
The amount of money for which a product or service is sold to the buyer.
- Calculate basic financial ratios such as markup percentage, markdown percentage, and return on investment.
- Comprehend the effect of managing inventory on financial statements.
Verified Answer
VM
Learning Objectives
- Calculate basic financial ratios such as markup percentage, markdown percentage, and return on investment.
- Comprehend the effect of managing inventory on financial statements.