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A higher inventory ratio indicates

A. Better inventory management

B. Quicker turnover

C. Both A and B

D. None of the above

Answer: Option C

Solution(By Examveda Team)

A higher inventory ratio indicates Better inventory management and Quicker turnover.

This Question Belongs to Commerce >> Accounting

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Comments ( 1 )

  1. Ramneek Sharma
    Ramneek Sharma :
    11 months ago

    A high ratio implies strong sales or insufficient inventory to support sales at that rate.
    It means we can't certainly say that it means better inventory management.

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