Gce Model Questions Vol1 2025 Commerce Question 20
Practice objective / multiple choice question 20 from the 2025 Gce Model Questions Vol1 Commerce examination.
A retail store recorded a cost of goods sold (COGS) of \(\text{₦}4{,}800{,}000\) and an average inventory value of \(\text{₦}600{,}000\) in 2025, giving an inventory turnover ratio of 8 times per year. The store is considering a new policy that will reduce the average inventory by 15% while COGS is expected to rise by 5% due to higher sales volume. Calculate the new inventory turnover ratio, the new days sales of inventory (DSI), and state whether the policy improves inventory efficiency.
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About This Question
This is Gce Model Questions Vol1 2025 Commerce Question 20. It is one of the objective questions from the 2025 Gce Model Questions Vol1 Commerce examination.
Difficulty level: Medium .
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