An activity ratio that measures how many times the inventory is turned over to meet the total sales figure is called the inventory turnover.

Name: An activity ratio that measures how many times the inventory is turned over to meet the total sales figure is called the inventory turnover.
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Question

Quizplus · Accepted Answer

The statement is true. The inventory turnover ratio reflects how efficiently a company manages its inventory by measuring how many times during a given period the inventory is sold and replaced.

An Activity Ratio That Measures How Many Times the Inventory