Helpp in accounting !

[Yazka Shathir]

Can someone explain in detail what would happen to the cost of sales as a result of a low rate of stock turnovver?

 

[job wilson]

Can someone explain in detail what would happen to the cost of sales as a result of a low rate of stock turnovver?

Inventory turnover ratio is used to measure the inventory management efficiency of a business. In general, a higher value of inventory turnover indicates better performance and lower value means inefficiency in controlling inventory levels. A lower inventory turnover ratio may be an indication of over-stocking which may pose risk of obsolescence and increased inventory holding costs. However, a very high value of this ratio may be accompanied by loss of sales due to inventory shortage.

 

[Sahil Nisar Soomro]

Can I help u In this regard dear................ But not at this place if u don't mind

 

[transformer629]

Can I help u In this regard dear................ But not at this place if u don't mind

kuch toh garbar he