When Calculating ROI on Inventory, Inventory Turnover Is Calculated By

question 19

Multiple Choice

When calculating ROI on inventory, inventory turnover is calculated by:

• A) Gross margin divided by Inventory
• B) Gross margin divided by Average inventory
• C) Sales revenue divided by Inventory
• D) Sales revenue divided by Average inventory

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Definitions:

Detonation

An uncontrolled, explosive ignition of fuel within an engine's cylinder after the spark plug has fired, often causing engine damage.

Circuit

In electricity, a path for electrons to flow from a source of higher electrical potential to a source of lower potential.

Timing Belt

A belt that synchronizes the rotation of the engine's crankshaft and camshaft, ensuring that the valves open and close at correct intervals.

Relative Compression Test

A quick way to identify a weak cylinder by cranking the engine with an inductive ammeter on the starter circuit. With a lab scope, cranking amperage can be graphed and correlated to a particular cylinder. A cylinder with low compression will draw fewer amps than a cylinder with higher compression, which will show on the graph.