Which of the following is the correct inventory turnover calculation?
A) Inventory / Cost of goods sold
B) Cost of goods sold /Inventory
C) Inventory / Average days cost of goods sold
D) Average days cost of goods sold / Inventory

Question

Quizplus · Accepted Answer

The correct calculation for inventory turnover is Cost of Goods Sold divided by Inventory. This measures how many times a company's inventory is sold and replaced over a period.

Which of the Following Is the Correct Inventory Turnover Calculation