The inventory turnover ratio used in measuring supply-chain efficiency is found by the ratio of which of the following?
A)Cost of goods sold/Average aggregate inventory value
B)Fixed costs/Variable costs
C)Sales costs/Marketing costs
D)Cost of goods sold/Cost to sell goods
E)Operations flow costs/Suppliers flow costs

Question

Quizplus · Accepted Answer

The inventory turnover ratio is calculated by dividing the cost of goods sold by the average aggregate inventory value. This ratio measures how efficiently a company is managing its inventory by showing how many times it is sold and replaced during a given period.

The Inventory Turnover Ratio Used in Measuring Supply-Chain Efficiency Is