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Companies operating in which of the following industries are most likely to have the highest inventory turnover ratios?

A. Department Stores
B. Fast Food Restaurants
C. Home Construction
D. Shipbuilding

User Lukino
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1 Answer

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Final answer:

Fast Food Restaurants are most likely to have the highest inventory turnover ratios because they deal with short-lived nondurable goods that spoil and are consumed quickly.

Step-by-step explanation:

The industry most likely to have the highest inventory turnover ratios is B. Fast Food Restaurants. Inventory turnover ratio is a measure of how frequently a company sells and replaces its stock of goods during a period. Fast food restaurants typically deal with short-lived nondurable goods like food, which have a higher turnover rate due to quick spoilage and consumption, meaning they need to restock more frequently compared to businesses dealing in long-lasting durable goods or services that don't require inventory stock, such as shipbuilding or home construction.

User Fcberg
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