Inventory Turnover Ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in

Question

Inventory Turnover Ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in

Inventory Turnover Ratio of a company is 3 times. State, giving reason, whether the ratio improves, declines or does not change because of increase in the Value of closing stock by Rs. 5,000.

Monjur Alahi

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2025-01-04 04:42

1 Answers

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Salim Ahmed Kawsar · Accepted Answer · 2023-02-05T15:29:48+06:00

Salim Ahmed Kawsar

Inventory Turnover Ratio will decline because the amount of average inventory will increase while Cost of Revenue from Operations (Cost of Goods Sold) will decrease.

5 views Answered 2023-02-05 15:29