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Explain a decrease in a company inventory turnover

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Problem 1: Which of the following would best explain a decrease in a company's inventory turnover (defined as cost of goods sold divided by average inventories. ?

Option 1: The company installed a new inventory management system, allowing more efficient inventory management.

Option 2: Due to problems with obsolescent inventory last year, the company wrote off a large amount of its inventory at the beginning of the period.

Option 3: The company installed a new inventory management system but experienced some operational difficulties resulting in duplicate orders being placed with suppliers.

Option 4: All the above statements are correct.

Option 5: None of the above.

Reference no: EM132617679

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