A local manufacturing company knows that its current stock turns equals 4. It also sees that a local software company has a stock turn of 22.
What does this baseline say about the local manufacturing company?
A . Software company is able to more quickly get their product out the door compared to the local manufacturing company
B . Software company manages their inventory better than the manufacturing company
C . Nothing – can not compare stock turns between different companies
D . Software company is slower than the manufacturing company to get their product out the door
Answer: C
Explanation:
Because these are two separate companies you will not be able to make a good comparison between the companies based on stock turns.