A danger to a firm's having a high asset turnover is the _____.
A)high operating costs
B)high level of old inventory on hand
C)high probability of being out of stock
D)low profits as a percent of sales

Question

Quizplus · Accepted Answer

A high asset turnover indicates that a firm is efficiently using its assets to generate sales, but it can also mean that inventory levels are low, increasing the risk of stockouts.

A Danger to a Firm's Having a High Asset Turnover