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

---

Definitions:

Monthly Rent

The amount of money paid on a monthly basis for the use or occupancy of property, such as an apartment or commercial space.

Sample

This refers to a selection of individuals from a broader population aimed at conducting surveys, observations, or interviews to derive statistical insights about the whole group.

Measures of Central Location

Statistical measures that indicate the center of a dataset, including the mean, median, and mode.

Extreme Values

Data points that are significantly higher or lower than the majority of the data in a dataset.