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    Question

    A company’s inventory turnover ratio is 8. If average

    inventory is ₹2,50,000, annual cost of goods sold is:
    A ₹20,00,000 Correct Answer Incorrect Answer
    B ₹2,00,000 Correct Answer Incorrect Answer
    C ₹3,00,000 Correct Answer Incorrect Answer
    D ₹1,00,000 Correct Answer Incorrect Answer
    E ₹10,00,000 Correct Answer Incorrect Answer

    Solution

    Inventory turnover = COGS / Avg Inventory → COGS = 8 × 2,50,000 = ₹20,00,000.

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