Question: Suppose items A and B have the same turnover ratio but item A has smaller annual sales than item B. All other things being equal,
Suppose items A and B have the same turnover ratio but item A has smaller annual sales than item B. All other things being equal, this implies there is on average
a) a larger inventory of B than of A.
b) a larger inventory of A than of B.
c) the same amount of inventory for A and B.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
