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

Purchased a latest machine, Teague Company purchased a latest machine on Ja...

Teague Company purchased a latest machine on January 1, 2012, at a cost of $150,000. The machine is expected to have an 8-year life and a $15,000 salvage value. The machine is expe

A firm is evaluating two machines, A firm is evaluating two machines. The f...

A firm is evaluating two machines. The first costs $250,000 and will require annual maintenance of $30,000 per year for 10 years. At the end of 10 years, the salvage value will b

What is income summary account, Q. What is Income Summary account? The ...

Q. What is Income Summary account? The Income Summary account is a clearing account used merely at the end of an accounting period to summarize revenues and expenses for the pe

A firm has $200, A firm has $200,000 in total assets and $120,000 in owner'...

A firm has $200,000 in total assets and $120,000 in owner's equity. What are the total liabilities? A. $80,000 B. $200,000 C. $320,000 D. Cannot be determined from the info

For earnings management, For earnings management, is impairment of goodwill...

For earnings management, is impairment of goodwill easier to manipulate than impairment of PPE?

Equity segment of a corporate balance sheet, Q. Equity segment of a corpora...

Q. Equity segment of a corporate balance sheet? The stockholders' equity segment of a corporate balance sheet can become more complex as you will see later in the text. But the

Institute of management accountants, The Institute of Management Accountant...

The Institute of Management Accountants previously the National Association of Accountants is an organization with approximately 70,000 members consisting of management accountants

What is depreciation, Q. What is Depreciation? Depreciation -- an expen...

Q. What is Depreciation? Depreciation -- an expense which is supposed to reflect the loss in value of a fixed asset. Forinstance if a machine will entirely wear out after ten y

Parternship, formation of partnership and changes in constitution of parter...

formation of partnership and changes in constitution of parternship

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd