Is it possible for the inventory turnover to be too high

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A company that grants terms of n/45 on all sales has a yearly accounts receivable turnover, based on monthly averages, of 5. Is this a satisfactory turnover? Discuss. Why is it advantageous to have a high inventory turnover? Is it possible for the inventory turnover to be too high? Discuss. Is it possible to have a high inventory turnover and a high number of days' sales in inventory? Discuss.

Reference no: EM13569017

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