What Is the Inventory Turnover Ratio (Rounded to One Decimal

question 10

Multiple Choice

What is the inventory turnover ratio (rounded to one decimal place) ?

• A) 12.5
• B) 13.4
• C) 14.7
• D) 2.2

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Definitions:

Merchandising Entity

A type of business that purchases finished goods for resale, earning a profit by selling these goods at a higher price.

Value Chain

A series of activities that companies perform to deliver a valuable product or service to their customers.

Overhead Rates

Ratios used to allocate indirect costs to products or services, based on certain bases like direct labor hours or costs.

Direct Labour Rate

The wage rate paid to employees directly involved in manufacturing goods or providing services, excluding indirect costs such as benefits and overtime.