Which of the Following Is Used to Determine the Rate

question 149

Multiple Choice

Which of the following is used to determine the rate of inventory turnover?

• A) Cost of goods sold divided by Gross profit
• B) Cost of goods sold divided by Average inventory
• C) Cost of goods sold times Average inventory
• D) Cost of goods sold times Gross profit

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Definitions:

Devaluation

Government policy that lowers the nation’s exchange rate so that its currency is worth less than it had been relative to foreign currencies.

Currency

Coins and paper money that serve as a medium of exchange.

Exports

Goods and services produced in a nation and sold to customers in other nations.

Imports

Goods and services bought by people in one country that are produced in other countries.