A firm has inventory turnover of 4 and cost of goods sold is ₹ 7,50,000. With better inventory management, the inventory turnover is increased to 6. This would result in:

CS Executive · Financial and Strategic Management · PYQS · June 2024
A firm has inventory turnover of 4 and cost of goods sold is ₹ 7,50,000. With better inventory management, the inventory turnover is increased to 6. This would result in:
(A) Increase in average inventory
(B) Decrease in average inventory
(C) Decrease in cost of goods sold
(D) Increase in cost of goods sold

Answer & Explanation:

Correct Answer: Option (B)

Official answer key: (B).

Topics: Financial Management

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