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Commerce · Q1956

Accounting

Graduate and Post Graduate · Commerce · question 1956

Q1956

A firms has inventory turnover of 3 and cost of goods sold is Rs. 2,70,000. With better inventory management, the inventory turnover is increased to 5. This would result in

A.
Increase in inventory by Rs. 54,000
B.
Decrease in inventory by Rs. 36,000
Answer
C.
Increase in cost of goods sold by Rs. 20,000
D.
Decrease in inventory by Rs. 90,000

Answer: Option B

Solution

Answer: Option B
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