Which of the Following Statements Is Not Correct Regarding the Importance

question 80

Multiple Choice

Which of the following statements is not correct regarding the importance of inventory turnover to a company's profitability?

• A)Companies will prefer to have a low inventory turnover rather than a high inventory turnover.
• B)It is sometimes more desirable to sell a large amount of merchandise with a small amount of gross margin than a small amount of merchandise with a large amount of gross margin.
• C)A company's profitability is affected by how rapidly inventory sells.
• D)A company's profitability is affected by the spread between cost and selling price.

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