The Inventory Turnover Calculation

question 22

Multiple Choice

The inventory turnover calculation:

• A)is wrong unless cost of goods sold is used in the numerator.
• B)is wrong unless sales is used in the numerator.
• C)is an alternative way of expressing the number of days' sales in inventory.
• D)requires knowledge of the inventory cost flow assumption being used.

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Definitions:

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Editing technique used to remove unwanted outer areas from an image or photograph to focus on the desired subject.