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Which one of the following best describes the Inventory Turnover Ratio?

Select one:a. Cost of Goods Sold / Average Inventoryb. Average Inventory / Cost of Goods Soldc. (Cost of Goods Sold - Net Sales) / Average Inventoryd. None of the above

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Question ajoutée par Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
Date de publication: 2015/02/05
Abdelkarim Fathi
par Abdelkarim Fathi , Supply Chain Section Head (acting as logistics manager) , SerioPlast Egypt SAE

answer us ( a ) cogs over average inventory during this year

Answer is a. Cost of Goods Sold / Average Inventory

Najeebudheen Cholayil
par Najeebudheen Cholayil , Senior Analyst , M. H. Alshaya Company

It is the ratio of cost of goods sold by a business during an accounting period to the average inventory of the business during the period.

 A.Cost of Goods Sold / Average Inventory

Answer B is correct because average inventory/cost of goods sold it measure how goods stay  in the warehouse before they are been sold.

 

Sarfaraz Liaquat
par Sarfaraz Liaquat , Dy. Manager Warehouse & Store , SalTec Powerlink

The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed by comparing cost of goods sold with average inventory for a period.

 

A) COGS / Avg. Inventory

Rita Matta
par Rita Matta , Assistant General Manager , Industrial company

procurement is the best for such answer

c. (Cost of Goods Sold - Net Sales) / Average Inventory

abdulrhman frikha
par abdulrhman frikha , MEDICAL CLAIMS SPECILAIST AND PROVIDER RELATIONSHIP , GLOBEMED SAUDI

AGREE WITH EXPERTS ANSWERS ..........................

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