APICS CPIM-8.0 Exam - Topic 3 Question 10 Discussion

Actual exam question for APICS's CPIM-8.0 exam

Question #: 10
Topic #: 3

[All CPIM-8.0 Questions]

Based on the values reported in the table below, what is the inventory turnover?

A0.50

B0.58

C1.73

D2.60

Show Suggested Answer

Suggested Answer: C

Inventory turnover is a ratio that measures how many times a company sells and replaces its inventory in a given period. It is calculated by dividing the cost of goods sold (COGS) by the average inventory value. A higher inventory turnover indicates a more efficient use of inventory, while a lower turnover implies excess inventory or poor sales1.

Based on the values reported in the table, we can calculate the inventory turnover as follows:

Inventory Turnover = COGS / Average Inventory Value = $260,000 / $150,000 = 1.73

Therefore, the correct answer is C.

by Nathalie at Jun 10, 2025, 05:54 AM

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Anika

6 months ago

Wait, are we sure about these numbers?

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Sheridan

7 months ago

Just did the math, and 0.58 seems off.

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Lindy

7 months ago

I think it's definitely around 2.60.

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Louisa

7 months ago

No way, it's gotta be 1.73!

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Socorro

7 months ago

0.50 seems way too low for turnover.

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Sol

7 months ago

I practiced a similar question last week, and I think the answer was around 1.7, so I’m leaning towards C.

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Rosendo

8 months ago

I feel like I might be mixing up the values from the table. Was the average inventory higher or lower than the cost of goods sold?

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Vincenza

8 months ago

I remember a practice question where we had to find the turnover ratio, and I think it was around 2.5, so maybe D is close?

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Craig

8 months ago

I think inventory turnover is calculated by dividing the cost of goods sold by the average inventory, but I'm not entirely sure about the exact formula.

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Tasia

8 months ago

I've got this! The inventory turnover is the cost of goods sold divided by the average inventory. Based on the values in the table, the answer is C - 1.73.

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Danica

9 months ago

Wait, what's the difference between cost of goods sold and average inventory? I'm a little confused on the concepts here.

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Goldie

9 months ago

I think I know how to do this. The inventory turnover is the cost of goods sold divided by the average inventory. I just need to find those values in the table and plug them in.

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Julianna

9 months ago

Hmm, I'm not sure how to calculate the inventory turnover from this information. I'll need to review the formula and think it through.

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Viva

9 months ago

Okay, this looks straightforward. I just need to find the inventory turnover ratio based on the values in the table.

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