An inventory turnover ratio of 7.2 compared to an industry average of

An inventory turnover ratio of 7.2 compared to an industry average of 5.1 is likely to indicate that

A) the firm is selling a product mix that includes more high margin items.
B) the firm has higher sales than the industry average.
C) the firm’s products are in inventory for fewer days before they are sold than is average for the
industry.
D) the firm is managing its inventory inefficiently.

ANSWER

C