1. Wear Crush Inc. is an apparel company known for its affordable clothes that follows a cost-leadership strategy. In this scenario, Wear Crush should ideally compare its strategic position with
A. a company that sells wristwatches at affordable prices.
B. a luxury apparel company that sells designer clothes.
C. an apparel company popular among price-conscious customers.
D. an online company that sells customized pet clothing.
2. The working capital of a small home-based business is $200,000. The revenues generated account to $600,000, and the profits incurred are $300,000. What would be the company's working capital turnover?
3, that is, $600,000/$200,000
$300,000, that is, $600,000 – $300,000
2, that is, $600,000/$300,000
$100,000, that is, $300,000 – $200,000
3. Which of the following ratios best expresses inventory turnover?
A. Inventory/Working capital
B. Annul profits/Inventory
C. Inventory/Per unit cost of production
D. Cost of goods sold/Inventory
4. The ratio of SG&A/Revenue is an indicator of a firm's focus on
A. researching to produce innovative products and services.
B. marketing to promote its products and services.
C. producing a good in an efficient manner.
D. creating a good that is cost-effective.