Advantages of high inventory turnover include all of the following EXCEPT:
A) Increased sales volume
B) Less risk of obsolescence and markdowns
C) Increased cost of goods sold
D) Increased asset turnover
E) Improved salesperson morale

Question

Quizplus · Accepted Answer

Increased inventory turnover means that products are selling faster, leading to increased sales volume and improved asset turnover. Additionally, there is less risk of obsolescence and markdowns as products are not sitting on shelves for extended periods. However, increased inventory turnover also leads to an increased cost of goods sold, as more inventory must be purchased to keep up with demand. Improved salesperson morale is not directly related to inventory turnover.

Advantages of High Inventory Turnover Include All of the Following