Question

Which of the following statements is true? Part 7 of 7 Multiple Choice 0 A low inventory turnover ratio produces a low number of days to sell inventory 0 O A high inventory tumover ratio produces a low number of days to sell Inventory о A high inventory turnover ratio produces a high number of days to sell Inventory С The Inventory turnover ratio is not related to the number of days to sell inventory < Prev 7 of 7 | Next >

Answer 1

Answer:

A high inventory tumover ratio produces a low number of days to sell Inventory

Explanation:

$\frac{365}{Inventory TO} = Days on Inventory$

Inventory turnover represent the times within a year the inventory is sold

while days on inventory represent the time it takes to sale the inventory as both metrics represent the rate at whic hivnentory is sold there is a relationship between them.

More times we sold the inventory within a year, less time it takes in days.