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Category > Accounting Posted 24 May 2017 My Price 8.00

What is the inventory turns ratio?

If the annual cost of goods sold is $30,000,000 and the average inventory is $10,000,000:

a. What is the inventory turns ratio?

b. What would be the reduction in average inventory if, through better materials management, inventory turns were increased to 10 times per year?

c. If the cost of carrying inventory is 20% of the average inventory, what is the annual savings?

 

Answers

Alpha Geek
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Status NEW Posted 24 May 2017 01:05 PM My Price 8.00

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