There Is No Simple Rule for Inventory Turnover, Except That

question 123

True/False

There is no simple rule for inventory turnover, except that a high ratio is preferable provided inventory is adequate to meet demand.

---

Definitions:

Coke

A trademarked name for a popular carbonated soft drink produced by The Coca-Cola Company, known globally.

Pepsi

A global beverage and food company known primarily for its flagship product, a carbonated soft drink called Pepsi.

Infrastructure

The basic physical and organizational structures and facilities needed for the operation of a society or enterprise, such as roads, buildings, and power supplies.

CVP

Stands for Cost-Volume-Profit analysis, a financial tool that companies use to determine how changes in costs and volume affect a company's operating income and net income.