Biology Forums - Study Force

Explain how to calculate an inventory turnover rate.
 
  What will be an ideal response?

Inventory turnover rates measure the frequency with which beverages are ordered and sold. The formula for the inventory turnover rate is Cost of goods sold  Average amount in inventory. The cost of goods sold (COGS) in the formula is the cost to purchase the beverage products that generated beverage revenue. The average inventory in the formula is the monetary value, or amount, of all products in inventory at the beginning of the period plus the amount of inventory at the end of the period, divided by two. Effective managers routinely calculate and monitor changes in their inventory turnover rates.

Extremely helpful