The Inventory Turnover Ratio Is Computed by Dividing Cost of Goods

question 60

Multiple Choice

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

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

Understand the components and purpose of the Consumer Price Index (CPI).

Compare and contrast CPI with GDP deflator.

Understand the effects of inflation and deflation on purchasing power and economic indicators.

Recognize how the Bureau of Labor Statistics measures and modifies the CPI.

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