Which circumstance is NOT consistent with efficient inventory management?
A)a high inventory turnover ratio
B)a low incidence of production schedule disruptions
C)a high total assets turnover
D)a high payable turnover ratio

Question

Quizplus · Accepted Answer

A high payable turnover ratio indicates that a company is paying its suppliers quickly, which can put strain on cash flows and lead to inventory shortages. Therefore, it is not consistent with efficient inventory management. Options A, B, and C are all consistent with efficient inventory management.

Which Circumstance Is NOT Consistent with Efficient Inventory Management