Match the following

1. Decreases

2. Inventory turnover ratio

3. Higher

4. Average days in inventory

5. Increases

6. Gross profit ratio

7. Lower

The approximate length of time the average inventory is held.

If a company's cost of inventory decreases and its selling price remains the same, the gross profit ratio _____.

The less frequently a company sells its inventory, the _____ its inventory turnover ratio.

When a company purchases inventory at the end of the year and does not sell it, the inventory turnover ratio _____.

A measure of the amount by which the sale of inventory exceeds its cost per dollar of sales.

Typically, the more specialized the inventory item, the _____ gross profit ratio.

The number of times a firm sells its average inventory balance during a reporting period.