A firm has inventory turnover of 6 and cost of goods sold is 7,50,000. With betterinventory management, the inventory turnover is increased to 10. This would result in:

Question

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Decrease in cost of goods sold,

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Increase in inventory by 50,000,

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Decrease in inventory by . 50,000,

TuteeHUB · Answer

Increase in cost of goods sold.

1.	A firm has inventory turnover of 6 and cost of goods sold is 7,50,000. With betterinventory management, the inventory turnover is increased to 10. This would result in:
A.	Increase in inventory by 50,000,
B.	Decrease in inventory by . 50,000,
C.	Decrease in cost of goods sold,
D.	Increase in cost of goods sold.
Answer» C. Decrease in cost of goods sold,

A firm has inventory turnover of 6 and cost of goods sold is 7,50,000. With betterinventory management, the inventory turnover is increased to 10. This would result in:

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