Which of the following will also likely show an increase for this firm?

A company’s average inventory value has remained relatively constant, while its cost of goods sold has increased.

Which of the following will also likely show an increase for this firm?
A . Stock level
B . Cycle time
C . Turnover
D . Variance

View Answer

Answer: C

Explanation:

An increase in cost of goods sold while maintaining a constant average inventory value results in higher inventory turnover. This indicates improved efficiency in managing inventory relative to sales.

Reference: Inventory management metrics highlight turnover as a critical measure of how effectively inventory is being utilized.