Tammy is a production manager at Eagle's Nest, Inc.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) _______ ratio.
A)current
B)inventory turnover
C)conversion
D)profitability
E)leverage

Question

Quizplus · Accepted Answer

Tammy should calculate the inventory turnover ratio, which measures how quickly inventory is sold and restocked. A low inventory turnover ratio indicates inefficient inventory management and can lead to excess inventory sitting in the warehouse for extended periods, tying up capital and increasing the risk of obsolescence or price markdowns.

Tammy Is a Production Manager at Eagle's Nest, Inc