The inventory turnover ratio is calculated by dividing
A)cost of goods sold by ending inventory.
B)cost of goods sold by beginning inventory.
C)cost of goods sold by average inventory.
D)average inventory by cost of goods sold.

Question

Quizplus · Accepted Answer

The inventory turnover ratio is calculated by dividing the cost of goods sold (COGS) by the average inventory during the period. This measures how efficiently a company manages its inventory.

The Inventory Turnover Ratio Is Calculated by Dividing