Jena is a production manager at Scooby Snacks. She is concerned that too much money is being wasted on inventory that is sitting in the warehouse too long. She should calculate a(n)
A) current ratio.
B) inventory turnover ratio.
C) conversion ratio.
D) profitability ratio.
E) leverage ratio.

Question

Quizplus · Accepted Answer

Jena should calculate the inventory turnover ratio to determine how efficiently the company is selling its inventory. It will give her an idea of how long inventory is sitting in the warehouse and how often it's being sold within a given time. By doing so, she can identify any inefficiencies and take corrective measures.

Jena Is a Production Manager at Scooby Snacks