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Which one of the following statements about the inventory turnover ratio is NOT correct? a) Too high a turnover or too low a turnover could
Which one of the following statements about the inventory turnover ratio is NOT correct?
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a) | Too high a turnover or too low a turnover could be a warning sign. |
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b) | The more times a company can turn over the inventory, the better. |
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c) | It measures how many times the inventory is turned over into saleable products. |
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d) | It is calculated by dividing inventory by cost of sales. |
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