Which of the Following Statements About Inventory Turnover Analysis Is

question 73

Multiple Choice

Which of the following statements about inventory turnover analysis is not correct?

• A)In making comparisons of financial statements,it is desirable to compare data calculated using the same inventory costing methods.
• B)The inventory turnover ratio and days to sell measure will be affected by the cost flow assumptions used,which causes problems for financial statements users.
• C)Inventory turnover also can vary significantly between companies within the same industry.
• D)The inventory turnover and days to sell ratios are consistent among companies in different industries.