Question: (a) Why is it advantageous to have a high inventory turnover? (b) Is it possible for the inventory turnover to be too high? Discuss. (c)

(a) Why is it advantageous to have a high inventory turnover?

(b) Is it possible for the inventory turnover to be too high? Discuss.

(c) Is it possible to have a high inventory turnover and a high number of days’ sales in inventory? Discuss.


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a A high inventory turnover minimizes the amount invested in inventories thus free... View full answer

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