For a merchandiser,inventory turnover refers to how many times:
A)during the period the company replaces its raw materials inventory.
B)the company buys and sells its inventory of goods.
C)the company produces and delivers its inventory of goods to customers.
D)the company orders merchandise.

Question

Quizplus · Accepted Answer

Inventory turnover is a measure of how quickly a company can sell its inventory. It is calculated by dividing the cost of goods sold by the average inventory during a certain period of time. Therefore, inventory turnover refers to how many times the company buys and sells its inventory of goods during the period.

For a Merchandiser,inventory Turnover Refers to How Many Times