Moonbeam Gift Shop's inventory turned over six times during the year.Similar gift shops have an inventory turnover equal to 12 times per year.What might explain Moonbeam's state of inventory management?

Question

Quizplus · Accepted Answer

A turnover of six times per year indicates that Moonbeam is holding onto their inventory for an average of two months. In comparison, similar gift shops have an inventory turnover of 12 times per year, which means they hold onto their inventory for an average of one month. This implies that Moonbeam may have too much inventory and needs to increase sales while decreasing the amount of inventory on hand to improve their inventory turnover.

Moonbeam Gift Shop's Inventory Turned Over Six Times During the Year.Similar