Although the inventory turnover ratio is an important analytical tool for many companies,it would be most crucial for a company that:
A)provides legal services.
B)sells cell phones and notebook computers.
C)manufactures steel.
D)sells paint.

Question

Quizplus · Accepted Answer

The inventory turnover ratio is particularly important for a company that sells physical goods, as it measures how many times the inventory is sold and replaced within a given period. For a company selling cell phones and notebook computers, the inventory turnover ratio would be especially crucial in determining how much inventory to hold and how quickly to restock to meet customer demand.

Although the Inventory Turnover Ratio Is an Important Analytical Tool