Inventory Turnover Is Calculated by Dividing

question 92

Multiple Choice

Inventory turnover is calculated by dividing

• A) cost of goods sold by the ending inventory.
• B) cost of goods sold by the beginning inventory.
• C) cost of goods sold by the average inventory.
• D) average inventory by cost of goods sold.

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Definitions:

Perfectly Competitive

A market structure where there are many buyers and sellers, all selling identical products, with no single entity able to influence the market price.

Swords

Edged weapons that are longer than knives, with a long metal blade and a hilt, used historically in warfare or dueling.

Total Cost

The sum of fixed costs and variable costs incurred in the production of goods or services.

Units of Output

The quantity of goods or services produced by a firm or industry.