The Inventory Turnover Ratio Is Computed By

question 98

Multiple Choice

The inventory turnover ratio is computed by:

• A)dividing the firm's cost of goods sold by its average inventory.
• B)dividing average inventory by firm's cost of goods sold.
• C)dividing the firm's revenue by its average inventory.
• D)dividing all costs by its average inventory.

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Definitions:

Consultant

A professional who provides expert advice in a particular area or industry.

Round Trip

A journey to a destination and back to the original starting point, usually referring to travel.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating its sensitivity to price changes.

Total Revenue

The total receipts from sales of goods or services over a specific period before any expenses are deducted.