In Trying to Evaluate the Management of Inventory You Could

question 28

Multiple Choice

In trying to evaluate the management of inventory you could calculate the inventory turnover ratio and compare that ratio to the industry average.You would conclude that inventory could be managed better if

• A)the company's inventory turnover was higher than the industry's.
• B)the company's inventory turnover was lower than the industry's.
• C)cost of goods sold for the company was higher than the industry's average.
• D)cost of goods sold for the company was lower than the industry's average.