Question

Other things remaining the same, if the average aggregate inventory value goes down, then Multiple Choice inventory turnover ratio stay the same, but weeks of supply will go down. inventory turnover ratio and weeks of supply will both go up. inventory turnover ratio will go down, but the weeks of supply will stay the same. inventory turnover ratio and weeks of supply will both go down. inventory turnover ratio will go up, but weeks of supply will go down.

Answer 1

Answer:

Inventory turnover ratio will go down, but the weeks of supply will go up.

Explanation:

Average aggregate inventory value can be regarded as term that give description of inventory that is been held in stock. These inventory could be

work in process as well as raw materials, and finished goods, whereby all are been valued at a cost.

Inventory turnover can be regarded as financial ratio that display number of times in which a company sold or replace their inventory during a specific time period. It should be noted that Other things remaining the same, if the average aggregate inventory value goes down, Inventory turnover ratio will go down, but the weeks of supply will go up.