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Which of the Following Is True with Regard to Inventory

Question 50

Multiple Choice

Which of the following is true with regard to inventory turnover ratio?


A) Generally,the higher a firm's inventory turnover ratio,the less time its inventory spends in storage and,therefore,the more efficient is the firm's use of the inventory.
B) Generally,the lower a firm's inventory turnover ratio,the less time its inventory spends in storage and,therefore,the less efficient is the firm's use of the inventory.
C) Generally,the higher a firm's inventory turnover ratio,the less time its inventory spends in storage and,therefore,the less efficient is the firm's use of the inventory.
D) Generally,the lower a firm's inventory turnover ratio,the less time its inventory spends in storage and,therefore,the more efficient is the firm's use of the inventory.

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