1. Which of the following figures from an organization's financial statements should be used as its flow rate when computing its inventory turns?
a. Sales revenue
b. Cost of goods sold
c. Inventory
d. Net Income
2. Which of the following is a possible response by a customer who is faced with a stockout is the most costly to the firm?
a. Lose the sale and lose the customer
b. Lose the sale
c. Lose the sale of one item, but the customer purchases another item
d. Customer waits for the item to become available