The Average Inventory Turnover Ratio ________

question 76

Multiple Choice

The average inventory turnover ratio ________.

• A) measures the number of times a company's inventory is sold out during the accounting period
• B) tells a business owner whether she/he is managing the company's inventory properly
• C) tells a business owner how fast the merchandise is moving through the business
• D) All of the above

---

Definitions:

Profitability

A measure of how efficiently a company or business generates profit in relation to its revenue.

Inventory

All raw materials, components, completed or partially completed products, and pieces of equipment a firm uses.