The Inventory Turnover Is Computed by Dividing Cost of Goods

question 30

Multiple Choice

The inventory turnover is computed by dividing cost of goods sold by

• A) beginning inventory.
• B) ending inventory.
• C) average inventory.
• D) 365 days.

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Definitions:

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including material and labor costs.

Ending Finished Goods Inventory

The value of all the finished goods available for sale at the end of an accounting period.