JAMB - Commerce (2022 - No. 51)
When the cost of sales is divided by the average stock, the result is
gross profit
net profit
rate of turnover
working capital
Paliwanag
Rate of stock turnover also known as stock turnover is the number of times stock are used up in an organization and it is calculated as:
Rate of stock turnover = cost of goods sold / Average stock
Rate of stock turnover = cost of goods sold / Average stock