The inventory turnover ratio is calculated as:
A. Ending inventory divided by cost of goods sold.
B. Cost of goods sold divided by ending inventory times 365.
C. Cost of goods sold divided by average merchandise inventory.
D. Cost of goods sold divided by ending inventory.
E. Sales divided by cost of goods sold.
Answer: C
You might also like to view...
Using Computer Aided Software Engineering (CASE) tools, the structure diagram can be transformed into machine code. Describe an advantage associated with this procedure
The method of analyzing cost behavior that uses two data points to first determine the variable cost per unit and then the total fixed cost is the:
a. Method of least squares. b. Scattergraph method. c. High-low method. d. Observation method.
Which of the following is not an analysis used in assessing solvency?
A) number of times interest charges are earned B) current position analysis C) ratio of net sales to assets D) inventory analysis
Identifying the primary and secondary activities that comprise a company's value chain
A. is called benchmarking. B. indicates whether a company's resource strengths will ultimately translate into greater value for shareholders. C. is the first step in understanding a company's cost structure (since each activity in the value chain gives rise to costs). D. reveals whether a company's resource strengths are well-matched to the industry's key success factors. E. is called resource value analysis.