Question: The inventory turnover calculation: Multiple Choice is wrong unless sales is used in the numerator. is wrong unless cost of goods sold is used in

The inventory turnover calculation:
Multiple Choice
is wrong unless sales is used in the numerator.
is wrong unless cost of goods sold is used in the numerator.
is an alternative way of expressing the number of days' sales in inventory.
requires knowledge of the inventory cost flow assumption being used.
An individual interested in making a judgement about the profitability of a company should:
Multiple Choice
compare the company's ROI for the most recent year with the industry average ROI for the most recent year.
review the trend of working capital for several years.
review the trend of the company's ROI for several years.
calculate the company's ROI for the most recent year.
The inventory turnover calculation: Multiple

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