The average inventory turnover ratio ________.
A)measures the number of times a company's inventory is sold out during the accounting period
B)tells a business owner whether (s)he is managing the company's inventory properly
C)tells a business owner how fast the merchandise is moving through the business
D)All of the above

Question

Quizplus · Accepted Answer

The average inventory turnover ratio measures the number of times a company's inventory is sold out during the accounting period, tells a business owner whether (s)he is managing the company's inventory properly, and tells a business owner how fast the merchandise is moving through the business. Therefore, all of the above are correct.

The Average Inventory Turnover Ratio ________