A-LevelAccountingAnalysis and communication of accounting information9706/12 · Oct/Nov 2016 · Q211 Mark
Owusu Limited has a constant level of annual sales and a constant gross margin. Each year the inventory increases. Which effects does this have on the inventory holding period and on inventory turnover? inventory holding inventory turnover (in days) (times) A decrease decrease B decrease increase C increase decrease D increase increase
Adecrease decrease
Bdecrease increase
Cincrease decrease
Dincrease increase
✓ Correct answer
C: increase decrease
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