[amp_mcq option1=”2 times” option2=”3 times” option3=”4 times” option4=”5 times” correct=”option3″]<\/p>\n
The correct answer is: C. 4 times<\/p>\n
The stock turnover ratio is a measure of how efficiently a company manages its inventory. It is calculated by dividing the cost of goods sold by the average inventory. In this case, the cost of goods sold is Rs. 2,20,000, the opening stock is Rs. 50,000, and the closing stock is Rs. 60,000. The average inventory is therefore (50,000 + 60,000)\/2 = Rs. 55,000. The stock turnover ratio is therefore 2,20,000\/55,000 = 4 times.<\/p>\n
Option A is incorrect because the stock turnover ratio is not 2 times. The stock turnover ratio is 4 times.<\/p>\n
Option B is incorrect because the stock turnover ratio is not 3 times. The stock turnover ratio is 4 times.<\/p>\n
Option D is incorrect because the stock turnover ratio is not 5 times. The stock turnover ratio is 4 times.<\/p>\n
The stock turnover ratio is an important metric for businesses to track. A high stock turnover ratio indicates that a company is efficient in managing its inventory. This can lead to lower costs and higher profits. A low stock turnover ratio indicates that a company may be holding too much inventory, which can lead to higher costs and lower profits.<\/p>\n","protected":false},"excerpt":{"rendered":"
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