How does the choice of cost formula affect financial ratios such as the inventory turnover ratio and

Question:

How does the choice of cost formula affect such as the and the current ratio? Does the choice have any effect on the actual rate at which an entity's inventory turns over or the entity's actual liquidity? Explain.

Inventory Turnover Ratio
Inventory Turnover RatioThe inventory turnover ratio is a ratio of cost of goods sold to its average inventory. It is measured in times with respect to the cost of goods sold in a year normally. Inventory Turnover Ratio FormulaWhere,... Financial Ratios
The term is enough to curl one's hair, conjuring up those complex problems we encountered in high school math that left many of us babbling and frustrated. But when it comes to investing, that need not be the case. In fact, there are ratios that,...