Advanced Questions

1:

A firm has inventory turnover of 6 and cost of goods sold is Rs. 7,50,000. With better inventory management, the inventory turnover is increased to 10. This would result in

A.

Increase in inventory by Rs. 50,000

B.

Decrease in inventory by Rs. 50,000

C.

Decrease in cost of goods sold

D.

Increase in cost of goods sold.

 

Answer : B

Explanation :

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Option: A

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