Which of the below metrics represents the number of times that a company's inventory turns over per year?
A)Back order
B)Inventory cycle time
C)Customer order cycle time
D)Inventory turnover

Question

Quizplus · Accepted Answer

Inventory turnover represents the number of times that a company's inventory turns over per year. It is calculated by dividing the cost of goods sold by the average inventory level. Back order measures the number of customer orders that could not be fulfilled immediately due to insufficient inventory. Inventory cycle time measures the elapsed time between when an item is received into inventory and when it is sold. Customer order cycle time measures the elapsed time between when a customer places an order and when the order is delivered.

Which of the Below Metrics Represents the Number of Times