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zubka84 [21]
3 years ago
6

New Coffee Company, LLC uses JIT (just-in-time) logistical supply methods. This indicates that the company doesn't really keep l

arge stocks of coffee on hand, which is cheaper from the standpoint of operations, but more risky because of the potential havoc any significant under- or over-supply of product could wreak. Which of the following ratios is of the utmost importance to New Coffee Company?A. Debt-to-assets ratiosB. Inventory turnover rationsC.Average collection period ratiosD. Current ratios
Business
1 answer:
Leona [35]3 years ago
4 0

Answer:

B) Inventory turnover ratios

Explanation:

Inventory turnover measures how many times a business sells and replaces its merchandise or materials inventory during an accounting period, usually a year.

One of the basic goals of JIT is to lower the total inventories in a company, therefore increasing the inventory turnover ratio. This reduces the company's operating costs.

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