What do you mean by inventory turnover, Accounting Basics

Assignment Help:

Q. What do you mean by Inventory turnover?

Inventory turnover -- a ratio which indicates amount of inventory a company uses tosupport a given level of sales. Formula is: Inventory Turnover = Cost of Sales ¸ AverageInventory. Numerous businesses have numerous general turnover levels. Ratio is significantin comparison with the ratio for previous periods or ratio for similar businesses.

Related Discussions:- What do you mean by inventory turnover

Amalgamation, format

format

Journal entry , Acquired a shop on monthly rent for Rs. 3,000 after paying ...

Acquired a shop on monthly rent for Rs. 3,000 after paying cash Rs. 36,000 as advance rent ??

Accounting standards in brief, Accounting Standards The flexibili...

Accounting Standards The flexibilities offered by a choice of accounting treatments distinctly diminish, and even distort the comparability of relevant inform

Assignment 3, Financial accounting reports are mandatory to be prepared by ...

Financial accounting reports are mandatory to be prepared by the firms, and are scrutinized by auditors, creditors or Government or Tax authorities. But management accounting recor

Explain about cash equivalents, Q. Explain about Cash equivalents? Cash...

Q. Explain about Cash equivalents? Cash equivalents are highly liquid short-term investments obtained with temporarily idle cash and easily convertible into a known cash amount

Setting Accounting Standards, Mission statement for PCAOB and AICPA and how...

Mission statement for PCAOB and AICPA and how it contributed to GAAP 2-3 pages APA style

Measurement in financial statements, Q. Measurement in financial statements...

Q. Measurement in financial statements? In December 1984 the FASB issued Statement of Financial Accounting Concepts No. 5 The Recognition and Measurement in Financial Statement

Starting inventory and net cost of purchases, Q. Starting inventory and net...

Q. Starting inventory and net cost of purchases? Hanlon's start inventory (USD 24000) plus net cost of purchases (USD 166000) is equivalent to cost of goods available for sale

Explain about cost of goods sold, Q. Explain about Cost of goods sold? ...

Q. Explain about Cost of goods sold? Cost of goods sold is the main expense in merchandising companies. Note the cost of goods sold segment of the classified income statement i

What is the cost of goods sold section, The cost of goods sold section ...

The cost of goods sold section Cost of merchandise sold to customers during a period is subtracted from net sales figure for the same period to get amount of gross profit. (Ne

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages