Accountıng I Deneme Sınavı Sorusu #1313837
Which if the following is true for "Inventory Turnover Ratio"?
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It is the other key ratio used by the management of a company to measure |
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It measures the number of times a company sells average level of merchandise inventory during a period. |
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It measures the number days that inventory is held by a company. |
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It is a method used in the calculation of the market value of work-inprocess inventory in manufacturing companies. |
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It is a method used in the calculation of the amount of work force required for production |
Inventory Turnover Ratio measures number of times a company sells average level of merchandise inventory during a period. Companies always try to manage their inventory levels in a way to meet their customer demand on a timely basis without making large investments. Inventory turnover ratio is used to determine how frequently merchandise inventory is sold
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