A pharmacy has purchased 550 products over a period of 3 months. If their average inventory was 235 products in a 3-month period, their inventory turnover rate for this period is

Question

Quizplus · Accepted Answer

The inventory turnover rate is calculated by dividing the cost of goods sold (or purchased, in this case) by the average inventory. Here, 550 products purchased divided by an average inventory of 235 products equals approximately 2.34.

A Pharmacy Has Purchased 550 Products Over a Period of 3