GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Turnover at cost / stock at cost
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Cost of goods sold / Average stock
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Turnover at selling price /Stock at selling price
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Any of the above
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Detailed explanation-1: -The stock turnover ratio formula is the cost of goods sold divided by average inventory. The stock turnover ratio determines how soon an enterprise sells its goods and products and replaces its inventories in a set duration.
Detailed explanation-2: -Inventory turnover, or the inventory turnover ratio, is the number of times a business sells and replaces its stock of goods during a given period. It considers the cost of goods sold, relative to its average inventory for a year or in any a set period of time.
Detailed explanation-3: -Stock to sales ratio = Average stock value / Net sales value This can be turned into a percentage by multiplying it by 100. To calculate average stock value, simply add your beginning inventory value and ending inventory value together, and then divide that sum by 2.