A high inventory turnover indicates: Group of answer choices a high level of funds tied up in inventory. a low level of funds tied up in inventory. inventory consists of mostly high value products. inventory consists of mostly low value products.

A high inventory turnover may indicateAn efficient use of the investment in inventory.A high risk of stock-outs.A low profit margin.Option 1 and Option 2 are correct.

excessive inventory lead to low service level? but why high inventory lead to high service level?

Define the term inventory.

An inventory turnover analysis is useful to the auditor because it may detect:Select one:a.the optimum automatic reorder points.b.methods of avoiding cyclical holding cost.c.inadequacies in inventory pricing.d.the existence of obsolete merchandise.

A business would NOT hold more inventory than it requires for which of the following reasons: Potential physical deterioration, or obsolescence, of the inventory. Cash tied up in inventory could be used more productively elsewhere in the business. Risk of theft of the inventory. Lack of warehouse space.