Which of the following is the most appropriate regarding Inventory turnover?
A. Inventory turnover increases as average inventory decreases, while other things remain the same.
B. Inventory turnover is an efficiency measure.
C. Inventory turnover is unaffected by changes in annual sales.
A) Choice A
B) Choice B
C) Choice C
D) Choice A and B only.
E) Choice A, B and C will hold.

Question

Which of the following is the most appropriate regarding Inventory turnover? 
A. Inventory turnover increases as average inventory decreases, while other things remain the same.
B. Inventory turnover is an efficiency measure.
C. Inventory turnover is unaffected by changes in annual sales.
A) Choice A
B) Choice B
C) Choice C
D) Choice A and B only.
E) Choice A, B and C will hold.

Quizplus · Accepted Answer

Inventory turnover is an efficiency measure that indicates how quickly inventory is sold and replaced over a period. It increases when average inventory decreases, assuming sales remain constant.

Which of the Following Is the Most Appropriate Regarding Inventory