What is inventory turnover used for?
A) It is used to see how effectively managers utilize their investment in inventory.
B) It is used to measure average inventory.
C) It is to see how effectively buyers purchase the right assortments.
D) It is used to calculate net sales.
E) None of these

Question

Quizplus · Accepted Answer

Inventory turnover is used to assess how efficiently a company uses its inventory by comparing the cost of goods sold with average inventory, indicating how often inventory is sold and replaced over a period.

What Is Inventory Turnover Used For