Ask Question
29 July, 01:27

In general, it's better to have a low inventory turnover ratio than a high one, as a low ratio indicates that the firm has an adequate stock of inventory relative to sales and thus will not lose sales as a result of running out of stock.

a. True

b. False

+4
Answers (1)
  1. 29 July, 04:38
    0
    b. False

    Explanation:

    Inventory Turnover tells us how fast the business is selling it's product. It measure the number of time an average inventory is completed its process from finished goods / Inventory to sales to customer. Higher the inventory turnover lower time of holding the inventory of each unit. So, the statement given is false.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “In general, it's better to have a low inventory turnover ratio than a high one, as a low ratio indicates that the firm has an adequate ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers