APICS APICS Certifications CPIM Questions & Answers

• Question 151:

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

  

  A. 0.50

  B. 0.58

  C. 1.73

  D. 2.60

  Correct 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 sales.

  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.