When opening stock is ₹ 50,000, closing stock is ₹ 60,000 and the cost of goods sold is ₹ 2,20,000, the…
Average Stock = (Opening Stock + Closing Stock) / 2 = (₹ 50,000 + ₹ 60,000) / 2 = ₹ 55,000. Therefore, Stock (Inventory) Turnover Ratio = Cost of Goods Sold / Average Stock…
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When opening stock is ₹ 50,000, closing stock is ₹ 60,000 and the cost of goods sold is ₹ 2,20,000, the stock turnover ratio is :
Answer and explanation
Correct answer C
Average Stock = (Opening Stock + Closing Stock) / 2 = (₹ 50,000 + ₹ 60,000) / 2 = ₹ 55,000. Therefore, Stock (Inventory) Turnover Ratio = Cost of Goods Sold / Average Stock = ₹ 2,20,000 / ₹ 55,000 = 4 times.
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UGC NET Commerce