Which statement is true regarding more turns in inventory?

The statement that more turns in inventory leads to fewer pieces of that stock line in inventory is true because higher inventory turnover indicates that products are selling quickly. When inventory turns over rapidly, it means that an establishment is effectively managing its stock levels, replenishing items as they sell. This results in fewer units of a particular stock line being held at any given time, as the focus is on maintaining a lean inventory that reflects current demand rather than excess supply.

This practice is beneficial as it helps businesses minimize holding costs associated with excess inventory, such as storage fees and potential obsolescence. By having fewer pieces of a stock line, a business can better align its inventory with customer preferences and buying patterns, enhancing overall efficiency in inventory management. Higher turnover can lead to a more responsive approach to inventory replenishment, ensuring that the right products are available when customers want them, thus potentially preventing stockouts and increasing customer satisfaction.