A high stockturn rate:
A) is only possible with a low markup percent.
B) is likely to result in low profits.
C) reduces the inventory investment and can improve profits.
D) increases the space needed for inventory.
E) None of these alternatives is correct.

Question

Quizplus · Accepted Answer

A high stockturn rate means that inventory is selling quickly, reducing the amount of money tied up in inventory and leading to lower inventory costs. This can improve profits overall, even with a higher markup percent. However, it may require more frequent restocking, which could potentially require more space for inventory.

A High Stockturn Rate