The Inventory Turnover Ratio Is Represented by Which of the Following

question 72

Multiple Choice

The inventory turnover ratio is represented by which of the following formulas?

• A) Net credit sales / Average inventory
• B) Average inventory / Net credit sales
• C) Cost of goods sold / Average inventory
• D) Average inventory / Cost of goods sold

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Definitions:

Market Price

The prevailing market rate at which a service or asset is available for purchase or sale.

Balanced Scorecard

A strategic planning and management system used by organizations to translate mission and vision statements into operational objectives and performance metrics across four perspectives: financial, customer, internal processes, and learning and growth.

Incentive Plan

A business strategy designed to motivate and reward employees in order to achieve higher levels of performance.

Organization's Goals

Objectives set by a company or an organization to guide its operations, steer its overall direction, and measure its performance over time.