If the average inventory value decreases and all other balances and values remai

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If the average inventory value decreases and all other balances and values remain the same, the resulting turnover inventory number (in terms of number of turns) will: Select one: a. increase b. stay the same c. decrease d. cannot be determined. Question 7 Not yet answered Marked out of 1.00 Not flaggedFlag question Question text If the average inventory value decreases and all other balances and values remain the same, the resulting number of inventory turnover days will: Select one: a. increase b. stay the same c. decrease d. cannot be determined

Explanation / Answer

If the average inventory value decreases and all other balances and values remain the same, the resulting turnover inventory number (in terms of number of turns) will increase.

It is so because average inventory decrease will reduce the cash conversion cycle and increase the number of cycles in a time period

7)If the average inventory value decreases and all other balances and values remain the same, the resulting number of inventory turnover days will decrease

It is so because average inventory decrease will reduce the number of days the inventory has to be replenished.

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