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Which of the following could cause inventory turnover to decline significantly from the prior year? A) Sales at the end of the year are unexpectedly
Which of the following could cause inventory turnover to decline significantly from
the prior year?
A) Sales at the end of the year are unexpectedly slow, leaving a large
balance in ending inventory.
B) Too much direct labor is allocated to cost of good sold.
C)Some inventory sold after the end of the current year is recorded as sales
for the current year.
D)The company typically uses FIFO to account for inventory but mistakenly
used LIFO during the current year.
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