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प्रश्न
What relationship will be established to study:
Inventory Turnover
थोडक्यात उत्तर
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उत्तर
Inventory Turnover ratio is computed to determine the efficiency with which the stock is used. This ratio is based on the relationship between cost of goods sold and average stock kept during the year.
Inventory/Stock Turnover Ratio = `"Cost of Goods Sold"/"Average Stock"`
Cost of goods sold = Opening stock + Purchases + Direct Expenses - Closing Stock
or, Cost of goods sold = Net sales - Gross Profit
Average Stock = `("Opening stock" + "Closing Stock")/2`
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