To monitor financial performance, a(n)________ ratio is used to assess cost of goods sold relative to inventory levels.
A)profit
B)operating
C)activity
D)leverage
E)liquidity

Question

Quizplus · Accepted Answer

An activity ratio, specifically the inventory turnover ratio, is used to assess the cost of goods sold relative to inventory levels, indicating how efficiently a company manages its inventory.

To Monitor Financial Performance, A(n)________ Ratio Is Used to Assess