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Tellus and Rojers Corp

Question 28

Multiple Choice

Tellus and Rojers Corp. are close competitors. Last year, both had the same level of cost of goods sold, but Tellus turned its inventory over five times during the year while Rojers Corp. turned its inventory over every 65 days. If the objective is to keep inventory as low as possible (on average) , which of the following is true?


A) Tellus did a better job since its inventory turnover was lower.
B) Rojers Corp, did a better job since its days' sales in inventory was lower.
C) Tellusa better job since its days' sales in inventory was lower.
D) Rojers Corp. did a better job since its inventory turnover was lower.
E) Tellus did a better job since its level of inventory was lower.

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