Accounting for IGCSE & O level - Preparation Of Financial Statements (Section 26 - No. 48)
What does the rate of inventory turnover represent, in simpler terms?
The average time inventory is held.
How quickly inventory is sold and replaced.
The total cost of all inventory.
The profit margin on inventory.
Explanation
The rate of inventory turnover signifies how rapidly inventory is sold and replenished during a period.
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