- An analyst observes a decrease in a company's inventory turnover. Which of the following puld most likely explain this trend? A The company installed a new inventory management system but experienced some operational difficulties resulting in duplicate orders being placed with suppliers. B. The company installed a new inventory management system, allowing more efficient inventory management. C. Due to problems with obsolescent inventory last year, the company wrote off a large amount of its inventory at the beginning of the period.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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6- An analyst observes a decrease in a company's inventory turnover. Which of the following
would most likely explain this trend?
A The company installed a new inventory management system but experienced some
operational difficulties resulting in duplicate orders being placed with suppliers.
B. The company installed a new inventory management system, allowing more efficient
inventory management.
C. Due to problems with obsolescent inventory last year, the company wrote off a large amount
of its inventory at the beginning of the period.
Transcribed Image Text:6- An analyst observes a decrease in a company's inventory turnover. Which of the following would most likely explain this trend? A The company installed a new inventory management system but experienced some operational difficulties resulting in duplicate orders being placed with suppliers. B. The company installed a new inventory management system, allowing more efficient inventory management. C. Due to problems with obsolescent inventory last year, the company wrote off a large amount of its inventory at the beginning of the period.
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