If a company carries 13 weeks of supply, what is the inventory turnover?a.0.077b.676c.7.77d.4e.0.25
Question
If a company carries 13 weeks of supply, what is the inventory turnover?a.0.077b.676c.7.77d.4e.0.25
Solution
Inventory turnover is a measure of how many times a company has sold and replaced inventory during a given period. It is calculated by dividing the cost of goods sold (COGS) by average inventory during the period.
In this case, the company carries 13 weeks of supply. To calculate the inventory turnover, we need to know how many weeks are in a year. There are approximately 52 weeks in a year.
So, the inventory turnover would be calculated as follows:
Inventory Turnover = Total weeks in a year / Weeks of supply Inventory Turnover = 52 weeks / 13 weeks Inventory Turnover = 4
So, the answer is d. 4.
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