Which of the following correctly describes the rate of inventory turnover?
A)It is how many days it takes the inventory to travel between the seller's warehouse and the buyer's warehouse.
B)It is how many days it takes from the time an order is received to the day it is shipped.
C)It is how quickly inventory is received from the supplier after the order is placed.
D)It is how rapidly inventory is sold.

Question

Quizplus · Accepted Answer

Inventory turnover is a measure of how quickly inventory is sold. It is calculated by dividing the cost of goods sold by the average inventory during a specific period of time. The resulting number represents how many times a company sold and replaced its inventory during the same period of time.

Which of the Following Correctly Describes the Rate of Inventory