Tessa is asked to complete the efficiency ratio for her employer's new product line. Which formula should she use to make this calculation?
A) current assets divided by current liabilities
B) net sales divided by average inventory
C) cost of goods sold divided by average inventory
D) net sales divided by cost of goods sold
E) average inventory divided by accounts receivable

Question

Quizplus · Accepted Answer

The Answer of Tessa is asked to complete the efficiency ratio for her employer's new product line. Which formula should she use to make this calculation?
A) current assets divided by current liabilities
B) net sales divided by average inventory
C) cost of goods sold divided by average inventory
D) net sales divided by cost of goods sold
E) average inventory divided by accounts receivable

Tessa Is Asked to Complete the Efficiency Ratio for Her