Which of the following describes the potential problems of approaches which improve inventory turnover?
A. Reducing the number of SKUs within a category can increase inventory turnover, but it can hurt sales if customers can't find the size or color they seek. Buying merchandise more often, and in smaller quantities, can reduce average inventory without reducing sales
B. while increasing operating expenses.
C. The reduced assortment can increase inventory tumover, however, customer patronage and sales can decrease.
D. All of the above
Ans: D. All of the above
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If the price level is 100 in one year and rises to 102 the next year, then the inflation rate is
A) 0.02 percent. B) 100 percent. C) 102 percent. D) 2.0 percent. E) unable to be determined without knowing potential GDP.
If the price level rises from 100 to 110 then the inflation rate is
A) 100 percent. B) 1.0 percent. C) 10.0 percent. D) 110 percent. E) None of the above answers is correct.