Asked by
Hawra AL Harthi
on Oct 20, 2024
Verified
The inventory turnover ratio is computed by dividing average merchandise inventory by cost of goods sold.
Inventory Turnover Ratio
A financial metric indicating how many times a company's inventory is sold and replaced over a specific period, often used to assess the efficiency of inventory management.
- Determine the rate of inventory turnover and recognize its impacts.
Verified Answer
CM
Learning Objectives
- Determine the rate of inventory turnover and recognize its impacts.