Q1. The inventory turnover ratio and the number of days in inventory are least likely used to evaluate the: A) stability of a firm’s inventory levels. B) effectiveness of a firm’s inventory management. C) age of a firm’s inventory.
Q2. Which of the following ratio levels would suggest that a company is holding obsolete inventory? A) Low inventory value compared to cost of goods sold. B) Low inventory turnover ratio. C) Low number of days in inventory.
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