When calculating the inventory turnover ratio, users may use the ending inventory or the average inventory for the year.

Name: When calculating the inventory turnover ratio, users may use the ending inventory or the average inventory for the year.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The inventory turnover ratio can be calculated using either the ending inventory or the average inventory for the year, with the average inventory method being more common as it accounts for fluctuations throughout the period.

When Calculating the Inventory Turnover Ratio, Users May Use the Ending