Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 2 - No. 27)
What is the purpose of calculating the inventory turnover rate?
To determine the company's total sales for the year.
To measure how efficiently a company is managing its inventory.
To calculate the company's profit margin.
To find the company's cost of goods sold.
Explanation
Inventory turnover measures the efficiency of inventory management.
Comments (0)
