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Question 56 - IIA-CIA-Part3 discussion

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An organization has a declining inventory turnover but an increasing gross margin rate. Which of the following statements can best explain this situation?

A.
he organization's operating expenses are increasing.
Answers
A.
he organization's operating expenses are increasing.
B.
The organization has adopted just-in-time inventory.
Answers
B.
The organization has adopted just-in-time inventory.
C.
The organization is experiencing inventory theft.
Answers
C.
The organization is experiencing inventory theft.
D.
The organization's inventory is overstated.
Answers
D.
The organization's inventory is overstated.
Suggested answer: B
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asked 18/09/2024
Matthew Montgomery
32 questions
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