A firm has inventory turnover of 3 and cost goods sold is Rs. 2,70,000 – McqOptions

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1.	A firm has inventory turnover of 3 and cost goods sold is Rs. 2,70,000. With better inventory management, the inventory turnover is increased to 5. This would result in
A.	Increase in inventory by Rs. 54,000
B.	Decrease in inventory by Rs. 36,000
C.	Increase in cost of goods sold by Rs. 20,000
D.	Decrease in inventory by Rs. 90,000
Answer» C. Increase in cost of goods sold by Rs. 20,000

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