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    • Question

      Company A has inventory turnover 6 times and average

      inventory ₹4,00,000. Annual cost of goods sold is:
      A ₹24,00,000 Correct Answer Incorrect Answer
      B ₹18,00,000 Correct Answer Incorrect Answer
      C ₹30,00,000 Correct Answer Incorrect Answer
      D ₹36,00,000 Correct Answer Incorrect Answer

      Solution

      Inventory Turnover = COGS / Average Inventory. Therefore, COGS = Inventory Turnover × Average Inventory = 6 × 4,00,000 = ₹24,00,000.

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