The Inventory Turnover Ratio

question 141

Multiple Choice

The inventory turnover ratio:

• A)is determined by dividing cost of goods sold by net sales.
• B)shows how many times the company sold its average level of inventory.
• C)should be high for a company that sells high-priced inventory items.
• D)will be lower for companies that have many low-priced items in their inventory.

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Definitions:

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