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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Inventory Turnover
Sir what is Inventory Turnover? I saw a few questions related to it in the exam kit but there is no mention of it in the lectures or notes
Cost of sales divided by the inventory.
Yes, but what does it mean?
A higher figure for the inventory turnover means that the inventory days are lower. Provided that they carry enough inventory to operate the business then the lower the inventory days (and therefore the greater the inventory turnover) the better.