The ___ is divided by the average inventory to obtain the inventory turnover. expenses
A) cost of goods sold
B) revenues
C) liabilities
D) expenses

Question

​The ___ is divided by the average inventory to obtain the inventory turnover. expenses
A) ​cost of goods sold
B) ​revenues
C) ​liabilities
D) ​expenses

Quizplus · Accepted Answer

The cost of goods sold is divided by the average inventory to obtain the inventory turnover. This ratio is used to determine how quickly a company is selling its inventory and managing its inventory levels. Choice B is incorrect because revenues are not used in the calculation of inventory turnover. Choice C is irrelevant to the calculation of inventory turnover. Choice D is incorrect because expenses are not used in the calculation of inventory turnover.

​The ___ Is Divided by the Average Inventory to Obtain

The ___ Is Divided by the Average Inventory to Obtain