The lower the inventory turnover ratio,the more efficiently the company manages its inventory,all other things equal.

Name: The lower the inventory turnover ratio,the more efficiently the company manages its inventory,all other things equal.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The opposite is true. The higher the inventory turnover ratio, the more efficiently the company manages its inventory as it indicates that the company is selling its inventory quickly and not holding onto excess inventory.

The Lower the Inventory Turnover Ratio,the More Efficiently the Company