When the cost of sales is divided by the average stock, the result is
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Correct Answer: Option C
Explanation:
The rate of stock turnover measures how many times the average stock of a business is sold or used during a period. It is calculated as: Rate of stock turnover = Cost of sales ÷ Average stock.
The rate of stock turnover measures how many times the average stock of a business is sold or used during a period. It is calculated as: Rate of stock turnover = Cost of sales ÷ Average stock.