Questioh 2 (of 6) value 0.83 points MC Qu. 165 Which of the following statements

Question

Questioh 2 (of 6) value 0.83 points MC Qu. 165 Which of the following statements about.. Which of the following statements about inventory measures is not correct? O If the inventory turnover ratio Increases, the days to sell measure decreases O The days to sell measure can help managers make ordering decisions for inventory O A higher inventory turnover ratio indicates that inventory is moving more quickly from purchase to sale. O It is rare for a company with a lower gross profit percentage to have a faster inventory turnover References MC Qu. 165 Which of the following statements about Multiple Choice

Explanation / Answer

Answer is 4th option

Explanation:

The statement given in fourt option is incorrect.

The statement says that it for rare for company for lower gross profit percentage to have faster inventory turnover. The statement is false as the company with lower gross profit percentage will usualy have a faster inventory turnover. As the company keeps lower margin in the product naturally sales would be higher and hence inventory turnover would be more.

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