Derive the stock turnover period.(Average stock = 23,000. Cost of sales = 300,000 year = 365 days).
-
28 days
- 42 days
- 27 days
- 23 days
The correct answer is: A
Explanation
Average stock / cost of sales x 365days.
23,000 ÷ 300,000 x 365 = 27.9 (Approximately 28 days)