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

Question

Quizplus · Accepted Answer

Too high of an inventory turnover could lead to increased cost of goods sold, which means the business is selling through inventory too quickly and may need to continuously restock at a higher cost. This can negatively impact profit margins.

A Disadvantage of Too High an Inventory Turnover Would Be