Post Utme Aaua 2018 Commerce Question 19

Practice objective / multiple choice question 19 from the 2018 Post Utme Aaua Commerce examination.

Post Utme Aaua 2018 Commerce Objective / Multiple Choice
Question 19 POST_UTME_AAUA • 2018 • COMMERCE • objective

A company's 'Inventory Turnover Ratio' is a measure of its ability to sell and replace its inventory. What is the formula for calculating the inventory turnover ratio?

Answer Options

Correct Answer A. ( ext{ITR} = rac{ ext{COGS}}{ ext{Average Inventory}} )
B. ( ext{ITR} = rac{ ext{Average Inventory}}{ ext{COGS}} )
C. ( ext{ITR} = rac{ ext{Sales}}{ ext{COGS}} )
D. ( ext{ITR} = rac{ ext{COGS}}{ ext{Sales}} )
Correct Answer
A
Correct Option:
( ext{ITR} = rac{ ext{COGS}}{ ext{Average Inventory}} )

About This Question

This is Post Utme Aaua 2018 Commerce Question 19. It is one of the objective questions from the 2018 Post Utme Aaua Commerce examination.

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