Inventory turnover is calculated by
A)dividing average inventory by cost of goods sold.
B)dividing cost of goods sold by average inventory.
C)dividing average inventory by the ending inventory.
D)adding beginning inventory to ending inventory and dividing by 2.

Question

Quizplus · Accepted Answer

Inventory turnover is calculated by dividing the cost of goods sold by average inventory. This formula helps a business determine how many times it has sold and replaced its inventory during the accounting period.

Inventory Turnover Is Calculated by