Chapter 12, Problem 9QC

Verba Corporation has an inventory turnover of 15 times per year, while the industry average is 4.0 times per year What does this indicate about Verba’s inventory turnover?

a.    Verba may have obsolete inventory on hand.

b.    Verba may not be keeping enough inventory on hand, which could lead to lost sales.

c.    Verba has too much inventory on hand.

d.    Verba is experiencing difficulties in selling the inventory.