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/Supplier flow costs

Question

Quizplus · Accepted Answer

The inventory turnover ratio is found by dividing the cost of goods sold by the average aggregate inventory value. This ratio indicates how many times a company's inventory is sold and restocked over a certain period. A high ratio indicates that the company is efficient in managing its inventory and supply chain.

The Inventory Turnover Ratio Used in Measuring Supply Chain Efficiency