Accounting for IGCSE & O level - Advanced Principles (Section 4 - No. 12)
What will be the impact of writing off some obsolete inventory in the inventory turnover ratio?
Reduce the cost of goods sold.
Increase the value of the average inventory.
Increase the inventory turnover ratio.
Have no impact.
คำอธิบาย
Writing off inventory decreases inventory and increases inventory turnover.