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If overtrading means that rapid growth in sales then why its says that inventory turnover slows down?
It is not that overtrading means a rapid growth in sales. It is a rapid growth in sales that can lead to overtrading.
Inventory turnover does not necessarily slow down with overtrading. However it might happen because employees are not prepared for the increase in business and lose control over things such as inventory management.
Have you watched my free lectures on overtrading?
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