Some Analysts Calculate the Inventory Turnover Ratio by Dividing Sales

question 68

True/False

Some analysts calculate the inventory turnover ratio by dividing sales, rather than cost of goods sold, by the average inventory.Using sales in the numerator will lead to correct measures of the inventory turnover ratio for calculating the average number of days that inventory is on hand until sale.

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Definitions:

Trigger Points

Hyperirritable spots in skeletal muscle associated with palpable nodules in tight bands of muscle fibers, commonly causing pain.

Headache

A painful sensation in any part of the head, ranging from sharp to dull, that may occur with other symptoms.

Pathology Present

Indicates the presence of disease or pathological changes in an organism.

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A condition characterized by the need to urinate more often than usual.