A reduction in a manufacturer's inventory turnover ratio is likely to indicate that the ________.
A) market growth has been very high
B) sales are slowing down
C) forecasting has been accurate
D) company is in a strong financial position
E) company has long-term debt obligations

Question

Quizplus · Accepted Answer

A)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.
B)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.
C)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.
D)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.
E)A decline in a manufacturer's inventory turnover ratio would indicate that sales are slowing down, or it could mean sales are steady but the company made some forecasting errors and as a result produced more goods than it needed.

A Reduction in a Manufacturer's Inventory Turnover Ratio Is Likely