Inventory Turnover Is Calculated By

question 22

Multiple Choice

Inventory turnover is calculated by:

• A) dividing average inventory by cost of goods sold
• B) dividing cost of goods sold by average inventory
• C) multiplying average inventory by cost of goods sold
• D) subtracting ending inventory from cost of goods sold

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Definitions:

Generating Awareness

The process of making potential customers conscious of a product, service, or brand through marketing and promotional activities.

Unsought Product

A type of product that consumers do not actively seek out to buy, often requiring significant marketing efforts.

Infrequent Purchases

Transactions that occur on an irregular basis, typically involving goods or services that are not bought regularly.

Limited Distribution

A strategy where a product is deliberately distributed to a limited number of outlets or locations to maintain exclusivity or control over the brand image.