HD Motorcycles has an inventory turnover ratio of 10.1 in 2012 compared to their competitor TT Motorcycle with a 2.6 ratio in 2012.Which of the following is the most likely cause of TT Co's lower ratio?
A) Lower levels of inventory compared to HD.
B) It takes TT Co.fewer days to sell their inventory.
C) TT Co's smaller size makes it difficult for them to achieve the economies of scale in comparison to HD's scale of operations.
D) Higher inventory levels compared to HD.
Correct Answer:
Verified
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