Days' sales in inventory of grocery stores are generally lower when compared to car dealerships.

Question

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Grocery stores have a faster turnover of inventory as they sell perishable goods which have a shorter shelf life whereas car dealerships have a slower turnover of inventory as vehicles are a high-value purchase and people buy them less frequently. Therefore, days' sales in inventory of grocery stores are generally lower than car dealerships.

Days' Sales in Inventory of Grocery Stores Are Generally Lower