Asked by
Areona Perkins
on Oct 28, 2024Verified
Inventory turnover is calculated as cost of goods sold divided by average inventory.
Inventory Turnover
A measure of how many times a company's inventory is sold and replaced over a specific period.
Cost of Goods Sold
The direct costs attributable to the production of goods sold in a company, including materials and labor.
Average Inventory
A measure used to estimate the value of inventory over a certain period by averaging the beginning and ending inventory.
- Comprehend the process of computing and the importance of inventory turnover.
Verified Answer
SP
Learning Objectives
- Comprehend the process of computing and the importance of inventory turnover.