Which of the following businesses would you expect to have the highest inventory turnover ratio?
A)A grocery store
B)A woman's clothing store
C)A manufacturer of women's clothing
D)A manufacturer of heavy equipment

Question

Quizplus · Accepted Answer

A grocery store would be expected to have the highest inventory turnover ratio because they sell perishable goods that have a limited shelf life and must constantly restock to maintain their inventory. Women's clothing stores and manufacturers of women's clothing may have a moderate inventory turnover ratio as fashion trends change, but not as high as a grocery store. A manufacturer of heavy equipment would have the lowest inventory turnover ratio because their products are expensive and not sold as frequently as grocery or clothing items.

Which of the Following Businesses Would You Expect to Have