________ measures the speed of inventory moving through the firm and its conversion into sales.
A) Asset turnover ratio
B) Inventory turnover ratio
C) Sales turnover ratio
D) Cost of goods sold turnover ratio

Question

Quizplus · Accepted Answer

The inventory turnover ratio utilizes the value of the cost of goods sold (the inventory that the firm has sold) and divides by the value of the average inventory the firm maintains. A sufficient turnover ratio (higher is better) will add to the company's cash flow.

________ Measures the Speed of Inventory Moving Through the Firm