SOFE Exam SOFA-CFE Topic 6 Question 84 Discussion

Actual exam question for SOFE's SOFA-CFE exam

Question #: 84
Topic #: 6

[All SOFA-CFE Questions]

Which of the following is the formula for the inventory turnover?

AInventory turnover = Cost of Goods Purchased / Average Inventory

BInventory turnover = Cost of Goods Sold / Average Inventory

CInventory turnover = Cost of Goods Sold / Total Inventory

DInventory turnover = Cost of Goods Purchased / Total Inventory

Show Suggested Answer

Suggested Answer: C

by Alex at Apr 12, 2024, 11:29 AM

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Sylvie

2 months ago

I bet the answer is B. Cost of Goods Sold divided by Average Inventory. That's the one that makes the most sense to me.

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Patrick

1 months ago

I believe it's C) Inventory turnover = Cost of Goods Sold / Total Inventory

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Ronna

1 months ago

I agree with you, B) Inventory turnover = Cost of Goods Sold / Average Inventory seems correct

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Olen

2 months ago

I'm not sure, but I think it might be A) Inventory turnover = Cost of Goods Purchased / Average Inventory

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Malika

2 months ago

I think you're right. B) Inventory turnover = Cost of Goods Sold / Average Inventory

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Denise

2 months ago

Wait, is it Total Inventory or Average Inventory? I can never remember which one to use in the formula.

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Ezekiel

23 days ago

Yes, you're right. Average Inventory is used in the formula to calculate inventory turnover.

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Ezekiel

26 days ago

I think it's Average Inventory because it represents a more accurate picture of inventory levels over a period of time.

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Ezekiel

2 months ago

B) Inventory turnover = Cost of Goods Sold / Average Inventory

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Alayna

2 months ago

I know this one! It's Cost of Goods Sold divided by Average Inventory. Easy peasy!

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Emile

1 months ago

Thanks for clarifying! I'll remember now that inventory turnover is Cost of Goods Sold divided by Average Inventory.

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Richelle

1 months ago

I always get confused with inventory turnover formulas, but now I know it's Cost of Goods Sold divided by Average Inventory.

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Louisa

2 months ago

That's correct! It's Cost of Goods Sold divided by Average Inventory.

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Theron

3 months ago

Hmm, I think it's Cost of Goods Purchased divided by Average Inventory. Hold on, let me double-check that...

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Lindsey

1 months ago

Let me check the formula again to be sure.

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Jacquline

1 months ago

I think it's actually Cost of Goods Sold divided by Average Inventory.

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Cherrie

2 months ago

I believe it's Cost of Goods Purchased divided by Average Inventory.

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Murray

3 months ago

The formula for inventory turnover is definitely Cost of Goods Sold divided by Average Inventory. I'm sure of that!

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Michel

2 months ago

Actually, the correct formula for inventory turnover is Cost of Goods Purchased divided by Average Inventory.

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Michel

2 months ago

Yes, you are correct! The formula for inventory turnover is Cost of Goods Sold divided by Average Inventory.

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Bette

3 months ago

I'm not sure, but I think it's C) Inventory turnover = Cost of Goods Sold / Total Inventory.

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Tenesha

3 months ago

I believe it is A) Inventory turnover = Cost of Goods Purchased / Average Inventory.

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Xochitl

3 months ago

I think the formula is B) Inventory turnover = Cost of Goods Sold / Average Inventory.

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