Which of the following is the result of Cost of sales divided by Average inventory?
A)Current ratio
B)Rate of inventory turnover
C)Gross profit percentage
D)Debt ratio

Question

Quizplus · Accepted Answer

Cost of sales divided by Average inventory gives us the rate of inventory turnover, which measures how quickly a company is selling its inventory and replenishing it. This ratio is important in assessing a company's efficiency in managing its inventory.

Which of the Following Is the Result of Cost of Sales