Which of the Following Is the Formula to Compute Inventory

question 10

Multiple Choice

Which of the following is the formula to compute inventory turnover?

• A)Net credit sales/average inventory
• B)Average net accounts receivable/one day's sales
• C)Cost of goods sold/average inventory
• D)Net credit sales/average net accounts receivable

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Definitions:

Independent Variable

A variable in an experiment or study that is manipulated or controlled by the researcher to investigate its effect on a dependent variable.

Slope

The measure of the steepness or incline of a line, calculated as the ratio of the vertical change to the horizontal change between two points on the line.

Dependent Variable

A variable in an experiment or model whose changes depend on the effects of other variables.