The Inventory Turnover Ratio Is Calculated by

question 83

Short Answer

The inventory turnover ratio is calculated by
dividing cost of goods sold by revenues.
dividing average inventory by cost of goods sold.
dividing revenues by cost of goods sold.
dividing cost of goods sold by average inventory.
dividing revenues by average inventory.

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Definitions:

Mass Production

A manufacturing technique that produces large quantities of goods efficiently by using assembly lines or automation technology.

Exchange

The act of giving one thing and receiving another, especially of the same type or value, in return.

Division of Labor

The assignment of different parts of a manufacturing process or task to different people in order to improve efficiency.

Mass Production

The manufacture of large quantities of standardized products, often using assembly line or automation technologies.