Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 6 - Reporting and Analyzing Inventory - Questions: 22

Answer

The inventory turnover ratio may be too high if the company has minimal funds tied up in inventory.

Work Step by Step

This also indicates that the company is losing sales opportunities because of inventory shortages.
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