A reduction in inventory would increase inventory turnover,which means an increase in that organization's return on assets (ROA).

Question

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A reduction in inventory means that the organization is selling its inventory more quickly, which would increase its inventory turnover ratio. A higher inventory turnover ratio indicates that the organization is more efficient in managing its inventory and generating sales. This, in turn, would lead to an increase in the organization's return on assets (ROA).

A Reduction in Inventory Would Increase Inventory Turnover,which Means an Increase