A company with a high inventory turnover requires a larger investment in inventory than another company of similar sales with a lower inventory turnover.

Name: A company with a high inventory turnover requires a larger investment in inventory than another company of similar sales with a lower inventory turnover.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Inventory turnover = Cost of goods sold ÷ Average inventory
A higher inventory turnover suggests a smaller investment in inventory is required.

A Company with a High Inventory Turnover Requires a Larger