The Inventory Turnover Rate for a Firm Is 14

question 32

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

---

Definitions:

Year

refers to a period of twelve months used for financial, business, and calendar purposes.

Ending Inventory

Ending inventory refers to the total value or quantity of unsold goods that a company holds at the end of an accounting period.

Cash Disbursements

The outflow of cash for expenses or investments, typically detailed in a financial planning or accounting report.

Goods Purchased

Items bought by a company for resale or use in production, contributing to inventory.