The Inventory Turnover Ratio Is Computed by Dividing Cost of Goods

question 43

True/False

The inventory turnover ratio is computed by dividing cost of goods sold by average merchandise inventory.

---

Definitions:

Anchor

A device used to connect a vehicle to the ground to prevent it from moving, or a metaphor for something that provides stability.

Drum

A cylindrical member that rotates and is part of a machine, such as in a drum brake where it provides the surface against which brake shoes press.

Brake Rotor

A component of disc brakes used in automotive and other applications, designed to provide a friction surface for the brake pads to slow or stop the vehicle.

Contact Area

The surface or region where two objects meet or press against each other, often critical for the transfer of force or heat.