Which of the following scenarios is consistent with a increasing cost of goods sold to sales percentage and increasing inventory turnover
A) Firm raises prices to increase its gross margin but inventory sells more slowly.
B) Weak economic conditions lead to reduced demand for a firm's products, necessitating price reductions to move goods.
C) Strong economic conditions lead to increased demand for a firm's products, allowing price increases.
D) Firm shifts its product mix toward lower margin, faster moving products.

Question

Quizplus · Accepted Answer

Shifting the product mix towards lower margin, faster moving products may lead to an increase in inventory turnover, but it could also result in an increasing cost of goods sold to sales percentage due to lower margins on the products sold.

Which of the Following Scenarios Is Consistent with a Increasing