A Low Inventory Turnover Ratio Might Indicate That

Multiple Choice

A low inventory turnover ratio might indicate that:

A) the firm is using the last-in first-out (LIFO) method of inventory valuation during inflationary periods.
B) the cost of inventory of the firm is lower than that of the similar firms.
C) the firm is holding excess stocks of inventory.
D) the inventory of the firm is sold and restocked very often.
E) the firm purchases all its inventory on credit.