a-company-has-a-beginning-inventory-of-5000-purchases-of-10000-and-an-ending-inv

Question

A company has a beginning inventory of $5,000, purchases of $10,000, and an ending inventory of $4,000. How does this information help in evaluating the company's inventory management?

Accepted Answer

It shows efficient inventory turnover.

Answer

It has no impact on inventory management evaluation.

Answer

It indicates poor inventory management.

Answer

It suggests excessive inventory holding.

A company has a beginning inventory of \$5,000, purchases of \$10,000, and an ending inventory of \$4,000. How does this information help in evaluating the company's inventory management?