It can be expected that companies selling perishable goods have a higher inventory turnover than companies selling nonperishable goods.

Question

Quizplus · Accepted Answer

Perishable goods have a limited shelf life, so companies selling them need to maintain a higher rate of inventory turnover to avoid spoilage and waste. On the other hand, companies selling nonperishable goods can afford to keep their inventory for a longer period as there are no concerns about expiry or spoilage. Therefore, it is expected that companies selling perishable goods have a higher inventory turnover than companies selling nonperishable goods.

It Can Be Expected That Companies Selling Perishable Goods Have