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:

Authority

The right or power to make decisions, give orders, or enforce rules.

Vice President

An officer in government or business who ranks below a president, typically responsible for assisting in executive duties.

Private Business Dealings

Commercial transactions or activities that occur between private entities without government involvement.

Officers

Individuals holding positions of command, authority, or responsibility within an organization, especially within a corporation's executive management.