Which of the following measures the relationship between cost of goods sold and the amount of inventory carried during the period?
A) inventory turnover
B) fixed asset turnover
C) retail method of inventory costing
D) gross profit method of inventory costing

Question

Quizplus · Accepted Answer

Inventory turnover measures the number of times a company sells and replaces its inventory during a period, indicating how efficiently the company is managing its inventory. It is calculated by dividing cost of goods sold by average inventory during the same period.

Which of the Following Measures the Relationship Between Cost of Goods