The inventory turnover ratio is measured as:
A) Total sales minus inventory.
B) Inventory times total sales.
C) Cost of goods sold divided by inventory.
D) Inventory times cost of goods sold.
E) Inventory plus cost of goods sold.

Question

Quizplus · Accepted Answer

The inventory turnover ratio is calculated by dividing the cost of goods sold (COGS) by the average inventory during a period. This measures how efficiently a company manages its inventory by turning it into sales.

The Inventory Turnover Ratio Is Measured As