Accounting for IGCSE & O level - Advanced Principles (Section 3 - No. 25)
Which of the following actions generally leads to an increase in a company's inventory turnover ratio?
Holding more inventory
Decreasing sales
Increasing the cost of goods sold
Increasing the sales volume
คำอธิบาย
Increasing sales volume while maintaining or decreasing inventory levels results in a higher inventory turnover ratio.