Inventory turnover is
A)average inventory divided by cost of goods sold.
B)average inventory divided by annual sales.
C)cost of goods sold multiplied by annual sales.
D)cost of goods sold divided by average inventory.

Question

Quizplus · Accepted Answer

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

Inventory Turnover Is