Inventory Turnover Is Computed by Dividing Average Merchandise Inventory by Cost

question 139

True/False

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

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Definitions:

Professional Licenses

Certifications issued by a government or professional body that verify someone's qualification to perform a particular profession.

Covenant Not To Compete

An agreement not to compete against a party for a set period of time within a designated geographic area.

Public Policy

Guiding principles and philosophies that underlie the laws and actions of a government, aimed at ensuring the public's general welfare.

Unenforceable

A term applied to a contract that, because of a law, cannot be enforced by the courts.