Which of the following statements can best explain this situation?

exams IIA-CIA-Part3 V0 IIA-CIA-Part3 exam 0 Comments

An organization has a declining inventory turnover but an increasing gross margin rate.

Which of the following statements can best explain this situation?
A . he organization’s operating expenses are increasing.
B . The organization has adopted just-in-time inventory.
C . The organization is experiencing inventory theft.
D . The organization’s inventory is overstated.

Answer: B