A low inventory turnover period indicates __ anticipations of rises in future sales price over-investment in inventories anticipations if increases in future sales volumes tight inventory controls

## Step 1:The inventory turnover is a measure of the number of times inventory is sold or used in a time period. A low turnover indicates a company has overstocked or has problems in sales.## Step 2:Tight inventory controls lead to higher turnovers as stocks are well-managed and not excessive. Anticipations of increases in future sales volumes or rises in future sales price do not necessarily state the cause of low inventory turnover, as these two can actually induce a company to stock more inventory.## Step 3:Since we know that the inventory turnover could be inversely related to the investment in inventory, it's valid to infer that excess or over-investment in inventory gives a low turnover.### The formula for inventory turnover is ** ** Observe by this, a higher inventory (denominator) leads to a lower result for the turnover.