Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 13)
How does a company's choice of inventory valuation method affect the inventory turnover ratio?
It has no impact on the inventory turnover ratio.
It can impact the cost of goods sold, and therefore the ratio.
It only affects the denominator of the ratio.
It only affects the numerator of the ratio.
Explanation
The COGS impacts the ratio.
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