A lower days' sales in inventory for Moonshine Inc.when compared to other companies,indicates that it is ________.

Question

Quizplus · Accepted Answer

Lower days' sales in inventory means that the company is selling its inventory quickly, as it is not holding onto it for an extended period of time. Therefore, option A is the best choice. Option B does not make sense, as lower days' sales in inventory would mean that the company is spending less on inventory storage. Option C does not directly relate to inventory turnover. Option D is also unlikely, as holding excess obsolete inventory would result in higher days' sales in inventory.

A Lower Days' Sales in Inventory for Moonshine Inc