A disadvantage of too high an inventory turnover would be:
A) decreased operating expenses
B) increased cost of goods sold
C) less risk of markdowns
D) increased sales volume
E) increased asset turnover

Question

Quizplus · Accepted Answer

A high inventory turnover can lead to increased cost of goods sold because it may require frequent restocking, potentially at higher prices, and can also result in stockouts, leading to lost sales or the need to purchase inventory at a premium.

A Disadvantage of Too High an Inventory Turnover Would Be