If a firm has an inventory turnover of 15, the firm:
A)sells its entire inventory every 15 days.
B)stocks its inventory only once every 15 days.
C)delivers inventory to its customers every 15 days.
D)sells its inventory by granting customers 15 days' of free credit.
E)sells its entire inventory an average of 15 times each year.

Question

Quizplus · Accepted Answer

Inventory turnover of 15 means the firm sells and replaces its entire inventory 15 times in a year.

If a Firm Has an Inventory Turnover of 15, the Firm