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A Low Inventory Turnover Ratio Suggests That

Question 61

Multiple Choice

A low inventory turnover ratio suggests that:


A) the firm is using the first-in first-out (FIFO) method of inventory valuation.
B) the cost of inventory of the firm is lower than that of the similar firms.
C) the firm is holding excess stocks of inventory.
D) the inventory of the firm is sold and restocked very often.
E) the firm purchases all its inventory on credit.

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