The Inventory Turnover Ratio Is Calculated by

question 62

Multiple Choice

The inventory turnover ratio is calculated by

• A) dividing cost of goods sold by revenues.
• B) dividing average inventory by cost of goods sold.
• C) dividing revenues by cost of goods sold.
• D) dividing cost of goods sold by average inventory.
• E) dividing revenues by average inventory.

---

Definitions:

Cow Feed

Refers to the food given to cows, which can include grass, grains, and nutritional supplements to ensure healthy growth and milk production.

Hay

Dried grass used primarily as animal fodder, especially for grazing animals like cows and horses.

Consumer Surplus

The gap between the price consumers are prepared to pay for a product or service and the actual amount they end up spending.

Reservation Price

The maximum price a consumer is willing to pay for a good or service, beyond which they will choose not to purchase it.