The lower the inventory turnover ratio, the higher the efficiency of operations.

Name: The lower the inventory turnover ratio, the higher the efficiency of operations.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The lower the inventory turnover ratio, the slower a company is selling its inventory and the less efficiently it is managing its inventory levels. A higher inventory turnover ratio indicates that a company is selling its inventory quickly, which is generally seen as a sign of good operational efficiency.

The Lower the Inventory Turnover Ratio, the Higher the Efficiency