Which of the following statements about inventory turnover is most appropriate?

Question

Quizplus · Accepted Answer

While a high inventory turnover ratio is generally desirable as it indicates efficient management of inventory, a company should also consider the cost of carrying too little inventory. In some cases, a lower turnover ratio may lead to higher profit margins, as it allows the company to take advantage of bulk discounts, improve vendor relationships, and avoid stockouts. Therefore, the most profitable inventory turnover ratio may not necessarily be the highest.

Which of the Following Statements About Inventory Turnover Is Most