An increase in inventory turnover means, days in inventory
A) increases.
B) remains the same.
C) decreases.
D) cannot be determined.

Name: An increase in inventory turnover means, days in inventory A) increases. B) remains the same. C) decreases. D) cannot be determined.
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Question

Quizplus · Accepted Answer

An increase in inventory turnover means that the company is selling its inventory more quickly, which would result in a decrease in the number of days for which its inventory is held. Therefore, days in inventory decreases.

An Increase in Inventory Turnover Means, Days in Inventory