Question: Explain the basic concept underlying all turnover ratios. Why is it advisable in computing a turnover ratio to use an average in the denominator (for

Explain the basic concept underlying all turnover ratios. Why is it advisable in computing a turnover ratio to use an average in the denominator (for example, average inventory)?

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Explain the basic concept underlying all turnover ratios.Why is it advisable in computing a turnover ratio to use an average in the denominator (for example, average inventory)? (Appendix)

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