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Which of the following industries is likely to have the highest number of days to sell inventory?

a. Retail
b. Technology
c. Food and Beverage
d. Automobile

1 Answer

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Final answer:

The automobile industry is likely to have the highest number of days to sell inventory due to the nature of vehicles being costly, durable goods that are bought infrequently, which results in slower inventory turnover compared to other industries.

Step-by-step explanation:

The question asks which industry is likely to have the highest number of days to sell inventory. When considering durable and nondurable goods, durable goods such as automobiles typically have longer sales cycles due to their higher price points and purchasing infrequency. Conversely, nondurable goods like food typically move faster through inventory due to their perishable nature and frequent buying patterns.

The automobile industry, which falls under transportation, experiences slower inventory turnover as consumers do not purchase new vehicles as frequently as they buy food, clothing, or technology products. Retail and food and beverage industries have a relatively quicker turnover due to the frequent consumer purchases in these areas. Technology products, while not as perishable as food, also tend to have a faster inventory turnover than automobiles because of rapidly changing models and consumer desire for the latest tech.

Therefore, the automobile industry is likely to have the highest number of days to sell inventory. This is because vehicles are expensive, long-lasting goods that consumers purchase less frequently, leading to a longer time period for inventory to sit on shelves before being sold.

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