A high inventory turnover indicates which of the following?
A)That the inventory is liquid and moving quickly.
B)That there is obsolete inventory.
C)That the company is building up inventory as part of an expansion plan.
D)That the company is experiencing a slowdown in sales.

Question

Quizplus · Accepted Answer

A high inventory turnover indicates that the inventory is liquid and moving quickly. This means that the company is efficiently managing its inventory and is able to sell its products quickly, which can lead to increased profitability.

A High Inventory Turnover Indicates Which of the Following