Question

Inversion Specialists, Inc., is relatively new in the industry and has calculated its inventory turnover at 5. What action would result in decreased inventory turns for Inversion Specialists, Inc.?:

a. improve internal supply-chain relations.
b. improve information flows with customers and supplier.
c. increase sales.
d. increase the average aggregate inventory value.

Answer 1

To decrease inventory turns for Inversion Specialists, Inc., they should increase the average aggregate inventory value.

Step-by-step explanation:

The correct action that would result in decreased inventory turns for Inversion Specialists, Inc. is to increase the average aggregate inventory value. Inventory turnover is calculated by dividing the cost of goods sold by the average inventory value. A higher average aggregate inventory value would increase the denominator in this calculation and thus decrease inventory turnover.