Inventory turnover can be calculated by ___________.
A)dividing the cost of goods sold by average inventory
B)dividing average inventory by the cost of goods sold
C)multiplying average inventory by 1.5
D)adding beginning and ending inventory and then dividing by 2

Question

Quizplus · Accepted Answer

Inventory turnover is calculated by dividing the cost of goods sold (COGS) by the average inventory during a certain period. This measures how many times a company's inventory is sold and replaced over a period.

Inventory Turnover Can Be Calculated by ___________