Which of the following statements is correct in regard to the importance of inventory turnover to a company's profitability?
A)Most companies prefer to have a low inventory turnover than a high inventory turnover.
B)It is sometimes more desirable to sell a large amount of merchandise with a small amount of gross margin than a small amount of merchandise with a large amount of gross margin.
C)A company's profitability is affected by how rapidly inventory sells as well as by the spread between cost and selling price.
D)Both B and C are correct.

Question

Quizplus · Accepted Answer

High inventory is generally preferable to low inventory turnover, so answer A is incorrect.

Which of the Following Statements Is Correct in Regard to the Importance