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 she/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 how many times a company's inventory is sold during the accounting period, which tells the business owner whether they are managing inventory properly and how fast merchandise is moving through the business. Therefore, all of the given choices are correct.

The Average Inventory Turnover Ratio ________