객관식
Which of the following is NOT an example of inventory carrying cost?
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5. Inventory
Inventory Errors
객관식
How is the inventory turnover ratio computed?
A
Net Sales divided by Ending Inventory
B
Average Inventory divided by Cost of Goods Sold
C
Cost of Goods Sold divided by Average Inventory
D
Gross Profit divided by Average Inventory
검증된 단계별 안내1
Understand the concept of the inventory turnover ratio: It measures how efficiently a company manages its inventory by showing how many times inventory is sold and replaced during a specific period.
Identify the formula for inventory turnover ratio: The correct formula is \( \text{Inventory Turnover Ratio} = \frac{\text{Cost of Goods Sold}}{\text{Average Inventory}} \).
Clarify the components of the formula: \( \text{Cost of Goods Sold} \) represents the direct costs attributable to the production of goods sold by the company, and \( \text{Average Inventory} \) is calculated as \( \frac{\text{Beginning Inventory} + \text{Ending Inventory}}{2} \).
Apply the formula: To compute the inventory turnover ratio, divide the \( \text{Cost of Goods Sold} \) by \( \text{Average Inventory} \). Ensure you have the values for both components before performing the calculation.
Interpret the result: A higher inventory turnover ratio indicates efficient inventory management, while a lower ratio may suggest overstocking or slow-moving inventory.
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