Question

The materials turnover ratio indicates which of the following?
It increases the value of the opening inventory.
It helps in reducing the investments in inventories and thus increases the return on investments.
It relates to the rearrangement of stored matenals in the store-room for reducing the wastages of the material
It helps in valuing the closing stock for the purpose of annual accounting.​

Answer 1

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It helps in reducing the investments in inventories and thus increases the return on investments