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  3. Study Set
    Accounting Information for Business Decisions
  4. Exam
    Exam 8: The Balance Sheet: Content, Use and Analysis
  5. Question
    The Inventory Turnover Ratio Is Used to Evaluate Inventory Purchasing
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The Inventory Turnover Ratio Is Used to Evaluate Inventory Purchasing

Question 37

Question 37

True/False

The inventory turnover ratio is used to evaluate inventory purchasing decisions with, for example, a high inventory turnover ratio indicating that stockouts (empty shelves) could be occurring.

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