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      Question

      A high Inventory Turnover Ratio, in comparison to

      industry average, may indicate:
      A Inefficient inventory management Correct Answer Incorrect Answer
      B Overstocking of goods Correct Answer Incorrect Answer
      C Efficient inventory management or stock-outs Correct Answer Incorrect Answer
      D High investment in inventory Correct Answer Incorrect Answer

      Solution

      A high Inventory Turnover Ratio generally indicates that inventory is being sold quickly, which is a sign of efficient management. However, it could also point to inadequate inventory levels leading to frequent stock-outs.

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