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.

Question

Quizplus · Accepted Answer

The inventory turnover calculation is an alternative way of expressing the number of days' sales in inventory.

The Inventory Turnover Calculation