Low inventory turnover compared with the industry average might reflect any of the following except:
A)obsolete goods.
B)poor purchasing procedures.
C)excess merchandise.
D)an increase in market share.

Question

Quizplus · Accepted Answer

A low inventory turnover indicates that a company is not selling its products as quickly as the industry average. This could be due to having obsolete goods, poor purchasing procedures, or excess merchandise. However, an increase in market share would indicate that the company is selling more of its products and therefore would not contribute to a low inventory turnover.

Low Inventory Turnover Compared with the Industry Average Might Reflect