The Gift Shoppe's inventory turned over five times during the year. Similar gift shops have an inventory turnover equal to ten times per year. What explains the Gift Shoppe's inventory management?
A) The Gift Shoppe sold too much inventory during the year.
B) The Gift Shoppe needs to increase sales and decrease the amount of goods on hand.
C) The Gift Shoppe is performing twice as well as it competitors.
D) The Gift Shoppe should increase the amount of goods on hand to accommodate the additional inventory demand.
B
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