Match each term related to inventory analysis with its description.
A. The number of times a firm sells its average inventory balance during a reporting period.
B. Typically, the more specialized the inventory item, the ________ gross profit ratio.
C. A measure of the amount by which the sale of inventory exceeds its cost per dollar of sales.
D. The less frequently a company sells its inventory, the ________ its inventory turnover ratio.
E. If a company's cost of inventory decreases and its selling price remains the same, the gross profit ratio ________.
F. When a company purchases inventory at the end of the year and does not sell it, the inventory turnover ratio ________.
G. The approximate length of time the average inventory is held.
A. Inventory turnover ratio
B. Higher
C. Gross profit ratio
D. Lower
E. Increases
F. Decreases
G. Average days in inventory
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