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If a Company Decreases Their Inventory Turnover Ratio from Last

Question 51

Multiple Choice

If a company decreases their inventory turnover ratio from last year to the current year,which of the following could cause that change?


A) Reduction of inventory levels through implementation of Just-in-Time.
B) Speedier production processes.
C) Increase in inventory levels through change in product mix.
D) Increasing sales at a faster rate than the growth in inventory while maintaining a constant gross profit percentage.

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