Accounting 0452 · IGCSE · Interpretation of accounting ratios

Interpretation of accounting ratios — practice question

A company gave the following data for its inventory turnover rate: year 1: $24$ times; year 2: $25$ times; year 3: $27$ times. What could account for the variation in this ratio?

  • Acost of sales is decreasing
  • Binventory is increasing
  • Csales volume is increasing
  • Dselling price is increasing

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