What can you say about the inventory at companies


Problem: Company Alpha is the market leader of consumer electronics and company Beta is a market follower with a revenue about 50% of Alpha. However, Beta carries about the same amount of inventory (in $) as Alpha. They have the same suppliers for key components. What can you say about the inventory at these companies? Group of answer choices Not sure; we need more information Alpha's inventory turnover (turns) is twice as much as that of Beta. Alpha's inventory turnover (turns) is half of that of Beta.

 

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Accounting Basics: What can you say about the inventory at companies
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