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Suppose That a Logistics Manager Is Able to Eliminate Some

Question 2

Multiple Choice

Suppose that a logistics manager is able to eliminate some unnecessary inventory,which reduces the value of current assets as well as total asset value.What is the corresponding impact on inventory turnover and return on assets?


A) Both inventory turnover and return on assets will increase
B) Inventory turnover increases,while return on assets decreases
C) Inventory turnover decreases,while return on assets increases
D) Both inventory turnover and return on assets will decrease

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