________ measures the speed of inventory moving through the firm and its conversion into sales.

Question

Quizplus · Accepted Answer

Inventory turnover measures how quickly a firm is able to sell and replenish its inventory. It is calculated by dividing the cost of goods sold by the average inventory for a specific period of time. A high inventory turnover ratio indicates that the company is efficiently managing its inventory and generating sales.

________ Measures the Speed of Inventory Moving Through the Firm