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Answer Posted / shamba
STOCK TURNOVER RATIO = COST OF GOODS SOLD/AVERAGE INVENTORY
COST OF GOODS SOLD= SALES -GROSS PROFIT
AVERAGE INVENTORY = (OP STOCK +CLOSING STOCK) /2
THIS RATIO ESTABLISHES RELATIONSHIP BETWEEN THE COST OF
GOODS SOLD AND AVERAGE INVENTORY CARRIED OUT.
| Is This Answer Correct ? | 16 Yes | 3 No |
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