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Path: P Words:0 QUESTION 9 Provide examples of merchandise which may have a relatively long shelf life as well as examples of
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Answer #1

Example of merchandise with long life

· Shampoos

· Fabric cleaners

Example of merchandise with short life

· Milk

· Fruits and Vegetables

The turnover of merchandise reduces the average inventory on hand and it means merchandise is moving fast. The higher the inventory turnover ratio it is better for a firm since it indicates there is fast movement of merchandise. Fast moving goods lead to lower non-moving and obsolete merchandise. Having non-moving and obsolete merchandise is financial loss to business due to working capital requirement and holding cost.

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