Which of the following is not true if excessive quantities of inventory are purchased?
A)Storage and interest costs may increase.
B)Goods might have to be sold at large discounts.
C)There is a greater probability that goods will become damaged or obsolete.
D)The inventory turnover ratio is likely to increase.

Question

Quizplus · Accepted Answer

Excessive quantities of inventory would decrease the inventory turnover ratio as it would take longer to sell off the inventory.

Which of the Following Is Not True If Excessive Quantities