LOS d: Discuss and calculate ratios useful for evaluating inventory management.
The inventory turnover ratio and the number of days in inventory are least likely used to evaluate the:
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A) |
effectiveness of a firm’s inventory management. | |
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stability of a firm’s inventory levels. | |
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C) |
age of a firm’s inventory. | |
Neither metric is directly relevant in evaluating the stability of a firm’s inventory levels. Determining stability would presumably require other information such as purchase and sales levels, for example. The inventory turnover ratio and the number of days in inventory can be used to evaluate the relative age of a firm’s inventory as well as the effectiveness of a firm’s inventory management.
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发表于 2010-4-19 14:31
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