Asked by Madison Forte on Jul 11, 2024
Verified
Discontinuing all slow-selling merchandise will tend to decrease the inventory period.
Inventory Period
The duration of time it takes for a company to sell its inventory and convert it into sales, often measured in days or months.
Slow-selling Merchandise
Items in inventory that move or sell at a slower pace than anticipated, often leading to excess stock and markdowns.
- Determine methods for controlling and enhancing the cash flow cycle.
Verified Answer
MC
Matthew ColvinJul 15, 2024
Final Answer :
True
Explanation :
Discontinuing slow-selling merchandise reduces the amount of inventory that takes longer to sell, thus potentially decreasing the overall time items spend in inventory before being sold.
Learning Objectives
- Determine methods for controlling and enhancing the cash flow cycle.
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