Question

How is the Stock Turnover Ratio calculated when opening and closing stock figures don't widely vary?

a.

Cost of Goods Sold / Average Stock

b.

Average Stock / Cost of Goods Sold

c.

Opening Stock + 12 months figures - Closing Stock / 12

d.

Cost of Goods Sold / Closing Stock

Answer: (a).Cost of Goods Sold / Average Stock Explanation:When opening and closing stock figures don't widely vary, the Stock Turnover Ratio is calculated as Cost of Goods Sold / Average Stock.

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Q. How is the Stock Turnover Ratio calculated when opening and closing stock figures don't widely vary?

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