An advantage of high inventory turnover is:
A) improved salespersons' morale
B) decreased operating expenses
C) increased asset turnover
D) more funds for other market opportunities
E) all of these

Question

Quizplus · Accepted Answer

High inventory turnover means that the company is selling its inventory quickly and efficiently. This can lead to a number of benefits, including:* Decreased operating expenses: When inventory is turned over quickly, the company does not have to spend as much money on storage and handling costs.* Increased asset turnover: Inventory turnover is a measure of how efficiently a company is using its assets. A high inventory turnover means that the company is generating more sales with its inventory, which can lead to increased profitability.* More funds for other market opportunities: When inventory is turned over quickly, the company can free up cash that can be used to invest in other market opportunities, such as new product development or marketing campaigns.

An Advantage of High Inventory Turnover Is