answersLogoWhite

0


Best Answer

Inventory turnover is the standard at which product inventory is acquired or made and further sold within a year. An assessment of all inventory-related business factors will have an impact on inventory turnover.

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What is the impact based on Inventory turnover?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What is the negative impact on good inventory turnover ratio?

An unusually high Inventory Turnover Ratio compared to Industry could mean a Business is losing sales because of inadequate stock on hand.


How to calculate Inventory turnover period?

Generally inventory turnover period is calculated as: Sales/Inventory Also by, Cost of Goods Sold/ Average Inventory


What is the inventory turnover ratio?

Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory and Average Inventory = ( Beginning Inventory + Ending Inventory ) / 2


What is the annual inventory turnover in the retail painting industry?

The annual inventory turnover in the retail painting industry is obtained by dividing the Annual Cost of Sales by the Average Inventory Level. A low inventory turnover ratio is a signal of inefficiency.


The receivables turnover and inventory turnover ratios are used to analyze?

prophitability


The cost of good sold by afirms was 20000 it maks a gross profit of 20 percent on saleif inventory at the beginning of the year was 4500 and the ending was 5500 what is inventory turnover ratio?

inventory turnover ratio==cogs/average inventory average inventory=opening inventory + closing inventory/2 average inventory =4500+5500/2 =5000 inventory turnover ratio = 20000/5000 = 4


The inventory turnover is calculated by dividing cost of goods sold by?

ending inventory


An aircraft company would have an low inventory turnover?

An aircraft company will incur low inventory turnover if the stock is purchased as bulk and demand is low, thus slow discharge of inventory.


What is the differences between Days of Inventory On Hand and inventory turnover?

Number of days inventory in hand tells about how many day's inventory is available while inventory turnover tells about how many times in a fiscal year inventory is used to convert to finished goods for sale.


Calculation of inventory turnover rate?

cost of goods sold/ Average inventory


Which inventory turnover rates is an indication of good inventory management?

Higher Rates


Why is slow inventory turnover a concern?

Slow inventory turnover means that you have too much capital invested in inventory. You could reduce inventory levels and put that money to better use - marketing, reduction of debt, etc