Which of the Following Is the Formula to Calculate a Firm's

question 12

Multiple Choice

Which of the following is the formula to calculate a firm's inventory turnover ratio?

• A)Inventory Turnover = Sales ÷ Inventory
• B)Inventory Turnover = Cost of goods sold ÷ Inventory
• C)Inventory Turnover = Inventory ÷ Current assets
• D)Inventory Turnover = Inventory ÷ Accounts receivables
• E)Inventory Turnover = (Sales - Cost of goods sold) ÷ Inventory

---

Definitions:

Savvy Consumerism

The behavior of consumers who are knowledgeable, informed, and judicious about their purchasing decisions, often focusing on value, quality, and impact.

Ethical Branding

Ethical branding is the practice of promoting and positioning a brand or product as ethically responsible, highlighting commitments to social justice, environmental sustainability, or fair trade practices.

Environmental

Pertaining to the natural world or the ecological circumstances that affect the survival and development of organisms.

Advertisement

A message aimed at persuading or informing an audience about a product, service, or idea, often designed to stimulate purchasing behavior.