Which of the following is divided by inventory to calculate the inventory turnover ratio?
A) total assets
B) gross profit
C) cost of sales
D) operating expenses

Question

Quizplus · Accepted Answer

The inventory turnover ratio is calculated by dividing the cost of sales (or cost of goods sold) by the average inventory. This ratio measures how efficiently a company manages its inventory.

Which of the Following Is Divided by Inventory to Calculate