Which ratio measures the number of dollars of sales produced per dollar of inventory?
A)Asset management
B)Cash
C)Internal-growth
D)Inventory turnover

Question

Quizplus · Accepted Answer

The ratio that measures the number of dollars of sales produced per dollar of inventory is the inventory turnover ratio. It is calculated by dividing sales by inventory. This ratio is a measure of how efficiently a company is managing its inventory and is a key indicator of financial performance. A high turnover ratio is generally considered favorable as it indicates that the company is effectively managing its inventory and generating sales from it.

Which Ratio Measures the Number of Dollars of Sales Produced