ISM Exam CPSM1 Topic 1 Question 85 Discussion

Actual exam question for ISM's CPSM1 exam

Question #: 85
Topic #: 1

A measure of velocity of total inventory movement through the organization, found bydividing annual sales by the average aggregate inventory value maintained during theyear is called:

AInventory proceeds

BInventory turnover

CInventory yield

DInventory return

Show Suggested Answer

Suggested Answer: B

by Rosalind at Apr 25, 2024, 07:41 PM

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Jovita

6 months ago

Exactly, it's an important metric for assessing the company's operational efficiency.

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Lashandra

6 months ago

That's right, Inventory turnover helps in evaluating how quickly a company sells its inventory.

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Jovita

6 months ago

Inventory turnover is the correct answer because it measures how efficiently a company is managing its inventory.

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Yuki

7 months ago

I'm not sure, but I think it's A) Inventory proceeds.

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Lashandra

7 months ago

I agree with Inventory turnover makes sense.

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Jovita

7 months ago

I think the answer is B) Inventory turnover.

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Angella

8 months ago

Interesting. It must be crucial for businesses to track their inventory turnover regularly.

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Kandis

8 months ago

Yes, that's correct. It helps in assessing how efficiently the inventory is being managed.

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Malcolm

8 months ago

So, it's calculated by dividing annual sales by the average aggregate inventory value?

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Kandis

8 months ago

The measure of velocity of total inventory movement through the organization is called Inventory turnover.

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