Which of the following represents the most useful function of inventory turnover analysis?
A) Identifying excess inventory, including obsolete inventory.
B) Determining the best supplier of raw materials based on cost comparison.
C) Creating new staffing positions for inventory support.
D) Developing more efficient methods for manufacturing finished products.

Question

Quizplus · Accepted Answer

Inventory turnover analysis helps in identifying how quickly inventory is sold and replaced, which can highlight excess or obsolete inventory.

Which of the Following Represents the Most Useful Function of Inventory