Suppose you are analysing the Inventory turnover (COGS/Inventory) of a company and you find that it has improved, even though the price of inventory has increased in the past year. Which of the following is/are not likely explanation(s) for the improvement? (select the best answer) Group of answer choices
O The company makes a specific decision to reduce the quantity of inventory it holds at year's end.
O The company offers discounts to customers if they place their order before year end.
O The company changes its cost flow assumption to LIFO
O All of the above are possible explanations.

Question

12-06-2024
Business

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Suppose you are analysing the Inventory turnover (COGS/Inventory) of a company and you find that it has improved, even though the price of inventory has increased in the past year. Which of the following is/are not likely explanation(s) for the improvement? (select the best answer) Group of answer choices
O The company makes a specific decision to reduce the quantity of inventory it holds at year's end.
O The company offers discounts to customers if they place their order before year end.
O The company changes its cost flow assumption to LIFO
O All of the above are possible explanations.

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