Which of the following measures the relationship between cost of merchandise sold and the amount of inventory carried during the period?
A) inventory turnover
B) fixed asset turnover
C) retail method of inventory costing
D) gross profit method of inventory costing

Question

Quizplus · Accepted Answer

Inventory turnover measures the relationship between the cost of merchandise sold and the average inventory during a specific period. It indicates how quickly a company sells its inventory and can be used to assess the efficiency of inventory management. Options B, C, and D do not measure the relationship between cost of merchandise sold and the amount of inventory carried during the period.

Which of the Following Measures the Relationship Between Cost of Merchandise