The higher the inventory turnover measure, the:
A) Faster a firm sells its inventory.
B) Faster a firm collects payment on its sales.
C) Longer it takes a firm to sell its inventory.
D) Greater the amount of inventory held by a firm.
E) Lesser the amount of inventory held by a firm.

Question

Quizplus · Accepted Answer

A higher inventory turnover indicates that a firm is selling its inventory more quickly, which means it is more efficient in managing its stock.

The Higher the Inventory Turnover Measure, The