Other Things Remaining the Same, If the Cost of Goods

question 40

Multiple Choice

Other things remaining the same, if the cost of goods sold decreases, then

• A) inventory turnover ratio and weeks of supply will both go up.
• B) inventory turnover ratio will go down, but the weeks of supply will go up.
• C) inventory turnover ratio and weeks of supply will both go down.
• D) inventory turnover ratio will go up, but weeks of supply will go down.
• E) inventory turnover ratio will stay the same, but weeks of supply will go down.

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