Which of the Following Formulas Gives the Inventory Turnover Ratio

question 157

Multiple Choice

Which of the following formulas gives the inventory turnover ratio?

• A)Net credit sales/Average inventory
• B)Average inventory/Net credit sales
• C)Cost of goods sold/Average inventory
• D)Average inventory/Cost of goods sold

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Definitions:

Subtotaling Costs

The process of calculating intermediate total costs at various stages or for specific categories within a larger project or budget analysis.

Reconciliation

The process of ensuring that two sets of records (usually the balances of two accounts) are in agreement, often as a part of financial audits.

Schedule Variance

A measure in project management that compares the actual work performed against the work scheduled.

ETC

Stands for "Estimated Time of Completion," referring to the forecasted date and time when a project or task is expected to be finished.