Inventory Turnover Can Be Calculated By

question 23

Multiple Choice

Inventory Turnover can be calculated by:

• A)Ratio of average inventory cost over cost of goods sold
• B)Ratio of cost of goods sold over average inventory cost
• C)Ratio of inventory days in stock over average inventory cost
• D)Ratio of average inventory cost over inventory days in stock

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Definitions:

Itemization

Refers to the process of breaking down a list or group into individual elements for detailed analysis or reporting.

Goods And Purchases

Transactions related to buying and selling physical products or merchandise in various economic sectors.

Accounting Formula

The formula that is considered the basis for all financial accounting, which is assets minus liabilities equals net worth.

Net Worth

The total value of an individual's or entity's assets minus liabilities, representing financial health.