Which of the following industries has the highest average inventory turnover ratio?
A) Retail clothing stores
B) Jewelry stores
C) Automobile dealerships
D) Supermarkets

Question

Quizplus · Accepted Answer

Supermarkets have the highest average inventory turnover ratio as they sell highly perishable goods and require a high volume of sales to maintain inventory levels. Retail clothing stores and jewelry stores have lower turnover ratios as their products may not need to be restocked as frequently. Automobile dealerships also have a lower turnover ratio as purchases of vehicles are infrequent and involve large capital investments.

Which of the Following Industries Has the Highest Average Inventory