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:

Import Quota

A government-imposed limit on the quantity or monetary value of a certain good or category of goods that can be imported into a country.

World Price

The international market price at which goods, services, or commodities are traded across countries.

Foreign Producers

Companies or individuals located outside a country's borders that produce goods or services for sale within that country.

Importing Country

A country that buys goods and services from abroad for domestic consumption or use.