Which of the following is the result of cost of goods sold divided by average inventory?
A) Current ratio
B) Gross profit percentage
C) Debt ratio
D) Rate of inventory turnover

Question

Quizplus · Accepted Answer

The rate of inventory turnover is the result of cost of goods sold divided by average inventory. This metric helps to evaluate how quickly a company is selling its inventory and how efficiently it is managing its working capital.

Which of the Following Is the Result of Cost of Goods