Inventory Turnover Is Computed by Dividing Cost of Goods Sold

question 183

True/False

Inventory turnover is computed by dividing cost of goods sold by average inventory.

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Definitions:

Active

Refers to something currently in operation or in use.

Nonintrusive

A term describing techniques or methods that do not require physical alteration or penetration of a system or object to assess or interact with it.

Monitor

To observe and check the progress or quality of something over a period, often through the use of instruments or sensors.

Pending Code

A diagnostic trouble code that is stored in memory, but not displayed, the first time the ECM detects a potential fault. A second trip is required to confirm the fault and display a hard code.