The _____ is purchase orders divided by customer inquiries.
A) current ratio
B) inventory turnover ratio
C) conversion ratio
D) profit margin on sales
E) none of these

Question

Quizplus · Accepted Answer

The conversion ratio measures how effectively a company is able to turn customer inquiries into actual purchases. Therefore, it is calculated by dividing purchase orders by customer inquiries. The other ratios listed (current ratio, inventory turnover ratio, and profit margin on sales) do not involve the relationship between purchase orders and customer inquiries.

The _____ Is Purchase Orders Divided by Customer Inquiries