Which of the following inventory principles is defined as the cost of goods sold divided by average ...

Inventory turnover rate

Rationale: Inventory turnover rate is the cost of goods sold divided by average inventory value. It is used to measure the effectiveness of a business with their monetary and product investments. Few inventory turnovers indicates that the pharmacy has too much inventory on hand. If there is a high number of inventory turnovers, this may indicate there is not enough inventory, resulting in medication outages and poor customer service.

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ASHP

Rationale: The ASHP does not track medication errors. All of the other organizations listed as answer choices do provide medication error tracking.