What Occurs When Inventory Turnover Ratios Are Too High

question 91

Multiple Choice

What occurs when inventory turnover ratios are too high?

• A) Inventory sits in storage a very long time.
• B) Customers become frustrated by items being out of stock.
• C) Too much inventory arrives too quickly.
• D) Sales increase.

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Definitions:

Decomposition Reaction

A chemical reaction in which a single compound breaks down into two or more simpler substances.

Oxidation

Loss of one or more electrons from a molecule.

Dehydration Reaction

A chemical reaction in which two molecules combine to form a larger molecule, with the removal of a water molecule.

Hydrolysis

A process where water splits the bonds within a specific substance through a chemical reaction.