Questions: Inventory turnover is defined as A. (total inventory investment/total assets) × 100. B. inventory investment / (annual cost of goods sold / 52 weeks). C. cost of goods sold / inventory investment. D. (total assets / total inventory investment) × 100.

Inventory turnover is defined as
A. (total inventory investment/total assets) × 100.
B. inventory investment / (annual cost of goods sold / 52 weeks).
C. cost of goods sold / inventory investment.
D. (total assets / total inventory investment) × 100.

Transcript text: Inventory turnover is defined as A. (total inventory investment/total assets) $\times 100$. B. inventory investment / (annual cost of goods sold / 52 weeks). C. cost of goods sold / inventory investment. D. (total assets / total inventory investment) $\times 100$.

Solution

The answer is C: cost of goods sold / inventory investment.

Explanation for each option: A. (total inventory investment/total assets) $\times 100$ - This formula does not represent inventory turnover. It seems to be a ratio of inventory investment to total assets, expressed as a percentage. B. inventory investment / (annual cost of goods sold / 52 weeks) - This formula is incorrect for inventory turnover. It appears to be an attempt to calculate the average weekly inventory investment, but it does not match the standard definition of inventory turnover. C. cost of goods sold / inventory investment - This is the correct formula for inventory turnover. It measures how many times a company's inventory is sold and replaced over a period, typically a year. D. (total assets / total inventory investment) $\times 100$ - This formula is also incorrect for inventory turnover. It seems to be a ratio of total assets to inventory investment, expressed as a percentage.

Summary: Inventory turnover is defined as cost of goods sold divided by inventory investment.

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