Assuming that the quantities of inventory on hand during the current year were sufficient to meet all demands for sales, a decrease in the inventory turnover for the current year when compared with the turnover for the preceding year indicates an improvement in inventory management.

Question

Quizplus · Accepted Answer

A decrease in inventory turnover indicates that inventory is not being sold as quickly as before, which could lead to higher carrying costs and potentially increased obsolescence. This suggests that inventory management may need improvement rather than indicating an improvement in inventory management.

Assuming That the Quantities of Inventory on Hand During the Current