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Question : -----------------ratio indicates the relationship between the cost of   revenue from operations (i.e., Cost of Goods Sold) during the year and average inventory kept during that year.

Option 1: Net profit ratio

Option 2: Trade receivable turnover ratio

Option 3: Inventory turnover ratio

Option 4: Working capital turnover ratio


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 13th Jan, 2024

Correct Answer: Inventory turnover ratio


Solution : Answer = Inventory turnover ratio

Inventory Turnover Ratio = Cost of goods sold / Average inventory

Inventory Turnover Ratio shows the Relationship Between cost of Goods sold and Average Inventory.
Hence, the correct option is 3.

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