Which of the following would cause a corporation's inventory turnover ratio to increase?
A) an increase in the accounts receivable turnover.
B) an increase in sales price per unit without a reduction in the number of units sold.
C) a switch from the immediate cash payment of inventory purchases to the credit purchase of inventory with payment due in 60 days (sales are unaffected).
D) none of these.

Question

Quizplus · Accepted Answer

None of the options directly affect the inventory turnover ratio, which is calculated as the cost of goods sold divided by average inventory.

Which of the Following Would Cause a Corporation's Inventory Turnover