Question: In completing a ratio analysis, you determine that a potential problem is occurring with inventory, since the inventory turnover is too low relative to the
In completing a ratio analysis, you determine that a potential problem is occurring with inventory, since the inventory turnover is too low relative to the industry and has been decreasing over time. Which of the following could be a possible cause?
a Prices are too high
b All of the above
c Obsolete inventory
d Too much inventory on hand
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