Inventory turnover is ______.
A)a measure of how frequently a business sells its inventory in a given time period
B)calculated as the ratio of the cost of goods sold to the average manufacturing cost
C)calculated as the ratio of the cost of goods returned by customers to cost of goods sold to customers
D)calculated as the product of the cost of goods returned by customers to cost of goods sold to customers

Question

Quizplus · Accepted Answer

Inventory turnover is a measure of how frequently a business sells its inventory in a given time period, typically calculated as the ratio of cost of goods sold to average inventory. This metric is used to evaluate a company's efficiency in managing its inventory and helps in determining stock levels and pricing strategies.

Inventory Turnover Is ______