Which of these statements is true?
A) A low inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management.
B) A high inventory turnover ratio or a low days' sales in inventory is a sign of good inventory management.
C) A low inventory turnover ratio or a high days' sales in inventory is a sign of good inventory management.
D) A high inventory turnover ratio or a high days' sales in inventory is a sign of good inventory management.

Question

Quizplus · Accepted Answer

A high inventory turnover ratio indicates that a company is selling and replenishing its inventory quickly, which is generally a sign of good inventory management. Similarly, a low days' sales in inventory means the company takes fewer days to sell its inventory, which is also indicative of efficient inventory management.

Which of These Statements Is True