Which of the following is the formula for the inventory turnover?
A. Inventory turnover = Cost of Goods Purchased / Average Inventory
B. Inventory turnover = Cost of Goods Sold / Average Inventory
C. Inventory turnover = Cost of Goods Sold / Total Inventory
D. Inventory turnover = Cost of Goods Purchased / Total Inventory
Answer:B
Which of the following is the formula for the inventory turnover?
A. Inventory turnover = Cost of Goods Purchased / Average Inventory B. Inventory turnover = Cost of Goods Sold / Average Inventory C. Inventory turnover = Cost of Goods Sold / Total Inventory D. Inventory turnover = Cost of Goods Purchased / Total Inventory