________ may indicate a firm is experiencing stockouts and lost sales.
A) Average payment period
B) Inventory turnover ratio
C) Average collection period
D) Quick

Question

Quizplus · Accepted Answer

The inventory turnover ratio measures how quickly a company is able to sell its inventory and replace it with new inventory. A high inventory turnover ratio suggests that the company is selling its inventory quickly, which is generally a positive sign. However, if the inventory turnover ratio is too high, it may indicate that the company is experiencing stockouts and lost sales because it is unable to keep enough inventory on hand to meet demand.

________ May Indicate a Firm Is Experiencing Stockouts and Lost