A low stockturn rate
A) is extremely good for profits.
B) decreases inventory carrying cost.
C) ties up working capital.
D) is usually linked with very low markups.
E) is typical of fresh fruits and vegetables.

Question

Quizplus · Accepted Answer

A low stockturn rate means that inventory is not selling quickly, which ties up working capital and can lead to higher carrying costs. It is not typically good for profits, as it indicates slow sales, and it is not necessarily linked to low markups. While fresh fruits and vegetables may have a shorter shelf life and require more frequent restocking, they still generally have a higher stockturn rate than items with longer shelf lives.

A Low Stockturn Rate