Generally,the higher a firm's inventory turnover ratio,______.

Question

Quizplus · Accepted Answer

A higher inventory turnover ratio means that the firm is selling its inventory quickly and efficiently, which is a positive indication of its operations. Therefore, choice B is the best answer. Choices A and C are incorrect because a higher inventory turnover ratio means less time and less inventory in storage. Choice D is incorrect because a higher inventory turnover ratio indicates higher demand for the firm's products.

Generally,the Higher a Firm's Inventory Turnover Ratio,______