What Is the Formula for Inventory Turnover

question 77

Multiple Choice

What is the formula for inventory turnover?

• A) annual cost of goods sold / average inventory in dollars
• B) annual sales / average inventory in dollars
• C) average inventory in dollars / annual cost of goods sold
• D) average inventory in dollars / annual sales
• E) annual cost of goods sold / annual holding cost

---

Definitions:

Confederate

An individual who is part of an experiment but pretends to be a participant and is aware of the study's aims.

Experimental

Pertaining to a methodological approach that involves manipulating one variable to determine if changes in one variable cause changes in another variable.

Independent Variable

The variable in an experimental setup that is manipulated or changed to observe its effect on the dependent variable.

Dependent Variable

In an experiment, the variable that is being tested and measured; it is 'dependent' on the independent variable.