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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Inventory Doubt
Hello Sir,
Hope you are well!
Below is the statement if its true/false?
A low level of slow?moving inventory would result in a decrease in the inventory holding period,
My answer – False, isnt the slow moving inventory will be kept inthe store house for longer period resulting in increasing the inevntory days ?
Well the context is not very clear but a reduction in the level of slow-moving inventory (“low level”) would mean speeding up of turnover and so decrease average inventory holding days.
Okay now I get it how you might have perceived it … Got it .. Thanks sir !
You’re welcome!