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sergiy2304 [10]
3 years ago
15

What is inventory turnover? Explain the effect of a high inventory turnover during the Christmas shopping season.

Business
1 answer:
charle [14.2K]3 years ago
4 0

Answer:

\frac{Sales}{Average Inventory} = $Inventory Turnover

​where:

$$Average Inventory=(Beginning Inventory + Ending Inventory)/2

The inventory turnover represent how many times the company sales their inventory during the year or period of analysis.

A high inventory turnover during Christmas shopping seasons mean sales are higher. The inventory in the store is sold more times during this time.

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