alleryInventory turnover ratio is most affected by:
AChoice of FIFO vs LIFO
BCurrency of foreign exchange
CIncome tax slab applied
DNumber of bank branches
Answer & Solution
Correct answer: A. Choice of FIFO vs LIFO
1. FIFO uses older costs for COGS in rising prices; LIFO uses newer costs.
2. This changes both COGS and closing inventory value, affecting the ratio.
3. The other listed factors don't directly bear on the ratio.
_Source: ICAI BoS Foundation Paper 1, Ch 4 "Inventories", §2 (iii)_
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