The answer is B. increasing inventory turnover ratio.

Here's why:

A. Increasing number of days' sales in inventory ratio: This is not a positive trend for inventory management. It means that a company is taking longer to sell its inventory, which can tie up cash and potentially lead to obsolete inventory.

B. Increasing inventory turnover ratio: This is a positive trend. A higher inventory turnover ratio indicates that a company is selling its inventory quickly, which is generally a sign of efficiency and high demand for its products.

C. Increasing cost of goods sold: This is not necessarily a positive trend for inventory management. While it could indicate higher sales, it could also mean that the company's costs are rising, which could hurt profits.

D. Increasing sales revenue: While this is generally a good thing for a company, it doesn't specifically indicate a positive trend in inventory management. A company could have increasing sales revenue but still have poor inventory management if it has a lot of obsolete inventory or if it's not turning over its inventory quickly enough.

Question

The answer is B. increasing inventory turnover ratio.

Here's why:

A. Increasing number of days' sales in inventory ratio: This is not a positive trend for inventory management. It means that a company is taking longer to sell its inventory, which can tie up cash and potentially lead to obsolete inventory.

B. Increasing inventory turnover ratio: This is a positive trend. A higher inventory turnover ratio indicates that a company is selling its inventory quickly, which is generally a sign of efficiency and high demand for its products.

C. Increasing cost of goods sold: This is not necessarily a positive trend for inventory management. While it could indicate higher sales, it could also mean that the company's costs are rising, which could hurt profits.

D. Increasing sales revenue: While this is generally a good thing for a company, it doesn't specifically indicate a positive trend in inventory management. A company could have increasing sales revenue but still have poor inventory management if it has a lot of obsolete inventory or if it's not turning over its inventory quickly enough.

Knowee AI · Accepted Answer

The answer is B. increasing inventory turnover ratio.

Here's why:

A. Increasing number of days' sales in inventory ratio: This is not a positive trend for inventory management. It means that a company is taking longer to sell its inventory, which can tie up cash and potentially lead to obsolete inventory.

B. Increasing inventory turnover ratio: This is a positive trend. A higher inventory turnover ratio indicates that a company is selling its inventory quickly, which is generally a sign of efficiency and high demand for its products.

C. Increasing cost of goods sold: This is not necessarily a positive trend for inventory management. While it could indicate higher sales, it could also mean that the company's costs are rising, which could hurt profits.

D. Increasing sales revenue: While this is generally a good thing for a company, it doesn't specifically indicate a positive trend in inventory management. A company could have increasing sales revenue but still have poor inventory management if it has a lot of obsolete inventory or if it's not turning over its inventory quickly enough.

LO 10.5 Which of the following indicates a positive trend for inventory management?Choose one answer from the options below.A. increasing number of days' sales in inventory ratioB. increasing inventory turnover ratioC. increasing cost of goods soldD. increasing sales revenueBackNext

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