The Inventory Turnover Rate for a Firm Is 14

question 8

Multiple Choice

The inventory turnover rate for a firm is 14.5 as compared to the relevant industry rate of 13.2. In this case, the firm is

• A) averaging less days of sales in inventory than the industry.
• B) underperforming the industry.
• C) generating less sales per dollar of inventory.
• D) selling its inventory slower than the industry.

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