Question
Which of the following is calculated by: Cost of Goods Sold ÷ Average Inventory?
Responses
Opportunity cost
Opportunity cost
Equilibrium
Equilibrium
Inventory carrying cost
Inventory carrying cost
Inventory turnover
Responses
Opportunity cost
Opportunity cost
Equilibrium
Equilibrium
Inventory carrying cost
Inventory carrying cost
Inventory turnover
Answers
GPT-4o mini
The correct response is:
**Inventory turnover**
Inventory turnover is calculated by dividing the Cost of Goods Sold (COGS) by the Average Inventory. It measures how many times a company's inventory is sold and replaced over a period.
**Inventory turnover**
Inventory turnover is calculated by dividing the Cost of Goods Sold (COGS) by the Average Inventory. It measures how many times a company's inventory is sold and replaced over a period.