Busch,Inc.is a successful company,but has a lower inventory turnover rate than the industry average.Of the following,the most likely explanation is that Busch:
A)Has a just-in-time inventory system.
B)Uses LIFO (assume rising purchase costs).
C)Offers its customers an unusually large selection of merchandise.
D)Sells unusually popular items.

Question

Quizplus · Accepted Answer

Offering customers an unusually large selection of merchandise can lead to a lower inventory turnover rate because it means the company is holding more stock to provide a wide range of products, which may take longer to sell.

Busch,IncIs a Successful Company,but Has a Lower Inventory Turnover Rate