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Careful attention is given to the inventory account by many business organizations because it represents one...

Careful attention is given to the inventory account by many business organizations because it represents one of the most significant assets held by the enterprise.What do you think?

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Answer #1

Yes.

Inventory is the most important asset to a company, because inventory turnover is the major source of revenue to any business organization. It is the driving force behind the ability of a company to generate revenue and profits.

Inventory should be managed in a cost efficient way to optimize profits. Inventory turnover ratio is calculated to know how efficiently you are selling your inventory.

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