The higher the inventory turnover measure,the:
A)longer it takes a firm to sell its inventory.
B)faster a firm collects payment on its sales.
C)faster a firm sells its inventory.
D)lesser the amount of inventory held by a firm.
E)greater the amount of inventory held by a firm.

Question

Quizplus · Accepted Answer

The inventory turnover measure is a ratio that measures how many times a company has sold and replaced its inventory during a specific period. A higher inventory turnover measure indicates that a company is selling its inventory faster, which means goods are not sitting stagnant in the warehouse.

The Higher the Inventory Turnover Measure,the