Moonbeam Gift Shop's inventory turned over six times during the year.Similar gift shops have an inventory turnover equal to twelve times per year.What explains Moonbeam's state of inventory management?

Question

Quizplus · Accepted Answer

A lower inventory turnover ratio indicates that a company is holding onto inventory for a longer period of time before selling it. This can be due to an excess of inventory, low sales volume, or inefficient inventory management. To improve their inventory management, Moonbeam should focus on increasing sales and reducing their inventory on hand.

Moonbeam Gift Shop's Inventory Turned Over Six Times During the Year.Similar