A manufacturer reported an inventory turnover ratio of 8.6 during 2009. During 2010, manage- ment introduced a

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A manufacturer reported an inventory turnover ratio of 8.6 during 2009. During 2010, manage- ment introduced a new inventory control system that was expected to reduce average inventory levels by 25 percent without affecting sales volume. Given these circumstances, would you expect the inventory turnover ratio to increase or decrease during 2010? Explain.

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Managerial Accounting

ISBN: 9780078110771

1st Edition

Authors: Stacey WhitecottonRobert LibbyRobert Libby, Patricia LibbyRobert Libby, Fred Phillips

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