INTE Exam Dumps | A company's average inventory value has remained relatively constant, while its cost of goods sold has

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Question 49/69

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

Correct Answer: C

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

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