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An Increase in the Inventory Turnover Ratio Is Normally Considered

Question 39

Multiple Choice

An increase in the inventory turnover ratio is normally considered to be favourable but could be unfavourable if it means:


A) liquidity is greater.
B) storage costs of inventory are lower.
C) inventory is less likely to become obsolete.
D) the firm is not carrying enough inventory to meet its customer's needs.

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