Multiple Choice
New Coffee Company uses JIT (justintime) logistical supply methods. This indicates that the company doesn't really keep large stocks of coffee on hand, which is cheaper, from the standpoint of operations, but more risky because of the potential havoc any significant under or oversupply of product could wreak. Which of the following ratios is of the utmost importance to New Coffee Company?
A) Debttoassets ratio
B) Inventory turnover ratio
C) Average collection period ratio
D) Current ratio
Correct Answer:
Verified
Correct Answer:
Verified
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