Cost of goods sold divided by average inventory is the calculation for which of the following ratios?
A)Net profit margin ratio
B)Current ratio
C)Inventory turnover ratio
D)Fixed asset turnover ratio

Name: Cost of goods sold divided by average inventory is the calculation for which of the following ratios? A)Net profit margin ratio B)Current ratio C)Inventory turnover ratio D)Fixed asset turnover ratio
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Question

Quizplus · Accepted Answer

Inventory turnover ratio = Cost of goods sold ÷ Average inventory

Cost of Goods Sold Divided by Average Inventory Is the Calculation