A change in the inventory turnover period from 47 days to 51 days indicates:
A)inventory is being sold faster
B)it is taking longer to sell inventory
C)the inventory turnover ratio is too high
D)the inventory turnover ratio is too low

Question

Quizplus · Accepted Answer

A longer inventory turnover period means it is taking longer to sell inventory, indicating a decrease in sales or an increase in inventory levels. Therefore, option B is the correct answer. Option A is the opposite of the correct answer, and options C and D are not relevant to the given scenario.

A Change in the Inventory Turnover Period from 47 Days