The lower the inventory turnover ratio,the more efficiently the company manages its inventory,all other things equal.
BT: Comprehension

Question

Quizplus · Accepted Answer

The statement is incorrect. The higher the inventory turnover ratio, the more efficiently the company is managing its inventory. This is because a high inventory turnover ratio indicates that the company is able to sell its inventory quickly, which reduces the risk of obsolescence, spoilage, or theft.

The Lower the Inventory Turnover Ratio,the More Efficiently the Company