Which of the Following Formulas Gives the Inventory Turnover Ratio

question 157

Multiple Choice

Which of the following formulas gives the inventory turnover ratio?

• A)Net credit sales/Average inventory
• B)Average inventory/Net credit sales
• C)Cost of goods sold/Average inventory
• D)Average inventory/Cost of goods sold

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Definitions:

Linear Regression

A statistical method used to model the relationship between a dependent variable and one or more independent variables, adding complexity beyond simple linear regression.

Observations

Data collected or measured from a study or experiment on variables of interest.

Table Value

A specific value located in a statistical table that is used to determine the significance or critical values in hypothesis testing.

Correlation Coefficient

A numerical measure of some type of correlation, meaning a statistical relationship between two variables, indicating strength and direction of a linear relationship between them.