Inventory turnover
A) is calculated by dividing accounts receivable by net sales.
B) equals total assets minus current assets divided by average inventory.
C) is calculated by dividing cost of goods sold by average inventory.
D) equals net sales minus cost of goods sold divided by average turnover.
E) is calculated by dividing accounts receivable by average inventory.

Question

Quizplus · Accepted Answer

Inventory turnover is COGS during a time period, typically a year, divided by the average level of inventory (expressed at cost) during the time period.

Inventory Turnover