All categories

1 year ago

Inventory turnover is computed by dividing average merchandise inventory by cost of goods sold.

1 answer:

7 0

Inventory turnover is computed by dividing average merchandise inventory by cost of goods sold. This statement is false.

Inventory turnover is the rate at which inventory stock is sold, or can be used, and can be replaced. The inventory turnover ratio is calculated by dividing the cost of goods sold by average inventory of the same period.

The inventory turnover ratio is the number of times a company has sold as well as replenished its inventory over a specific amount of time. The formula of inventory turnover can also be used to calculate the number of days it will take to sell the inventory in hand.

Inventory Turnover Ratio is defined as = Cost of Goods Sold / Avg. Inventory

To know more about inventory turnover ratio here:

brainly.com/question/14772105

#SPJ4

You might be interested in

A firm has $848 in inventory, $1,740 in fixed assets, $668 in accounts receivable, $416 in net working capital, and $231 in cash

soldier1979 [14.2K]

Answer:

$1,331

Explanation:

With regards to the above information, we need to calculate first current assets.

Current assets = $848 in inventory + $668 in accounts receivable + $231 in cash

Current assets = $1,747

Therefore,

Current liabilities = Current assets - Net working capital

Current liabilities = $1,747 - $416

Current liabilities = $1,331

8 0

3 years ago

Which examples demonstrate common education and qualifications for Distribution and Logistics careers? Check all that apply.

Gwar [14]

Answer:

Explanation:

i got it

4 0

3 years ago

Read 2 more answers

What increases the competitive pressures associated with the threat of entry?

Archy [21]

Answer: E. When newcomers can expect to earn attractive profits

Explanation:

The Threat of Entry refers to the threat that companies that are already in the market face from companies that are looking to enter the market.

If the market is so profitable that newcomers can expect to make attractive profits, a lot of companies will come into the market to make said profits which will increase the competition in the market.

5 0

4 years ago

Does( making) a ebook cost money

SVEN [57.7K]

Usually it costs money to publish an ebook, but not to make one; unless you use a program that offers different upgrades to make the ebook better or to access certain things.

6 0

3 years ago

Indigo Construction Inc. agrees to construct a boat dock at the Smooth Sailing Marina for $43,700. In addition, under the terms

pogonyaev

Answer: The transaction price that Indigo should compute for this agreement = $54,260

Explanation:

First , we'll evaluate Variable consideration using expected value method.

The probability of time completion is 60%

The consideration (performance bonus) = 12,000;

∴ Expected consideration = 60% of 12000 = $7,200 

Probability of completing the project one week late = 20%

The consideration = 9600

∵ The performance bonus reduces by 2400 for delay of a week;

∴ Expected consideration = 20% of 9600 = $1920

Similarly, for a delay of 2 weeks,

Expected consideration = $1,440 

So, the total expected consideration comes to 10,560/-

Transaction price = contract cost + Variable consideration

=43700+(12000 × 0.6+ 9600 × 0.2 + 7200 × 0.2)

=$54,260

3 0

4 years ago