An inventory turnover ratio:
A)Measures how often a company moves its inventory out to its supplies within a systematic period of time.
B)Measures the predictability of inbound inventories.
C)Measures the profitability of trading inventories.
D)None of the above.

Question

Quizplus · Accepted Answer

The inventory turnover ratio is as crucial as any other measures for inventory control. It measures how often a company moves its inventory out to its supplies within a systematic period of time. Knowing this helps companies move to move their inventory out of factories faster, resulting in more efficiencies in inventory management.

An Inventory Turnover Ratio