The..............may indicate that the firm is experiencing stockouts and lost sales.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Inventory turnover ratio
The inventory turnover ratio shows how many times inventory is converted into sales in a year. A very high ratio means very little inventory is being held for the sales made, so the firm may be running out of stock and losing sales.
NCERT (2026-27 edition):
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