Practice - Inventory Turnover Ratio
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Practice Questions
Test your understanding with targeted questions
What does the Inventory Turnover Ratio measure?
💡 Hint: Look for what the ratio indicates about sales.
What is the formula for calculating the Inventory Turnover Ratio?
💡 Hint: Remember the acronym 'COGS over AI'.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What does a higher Inventory Turnover Ratio indicate?
💡 Hint: Think about sales performance and inventory efficiency.
True or False: A low Inventory Turnover Ratio suggests that a company is managing its stock effectively.
💡 Hint: Reflect on the implications of low turnover.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A retail store has COGS of ₹500,000 and an ending inventory of ₹100,000. If the beginning inventory was ₹80,000, what is the Inventory Turnover Ratio?
💡 Hint: Calculate average inventory first!
Explain how a company could improve its Inventory Turnover Ratio.
💡 Hint: Consider operational changes to enhance efficiency.
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