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JAMB Commerce 2021 Objective — Question 5

Question 5 of 40 from the Joint Admissions and Matriculation Board (JAMB) Commerce 2021 Objective paper, with the correct answer and a full explanation.

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5. Which of the following formula is used to compute rate of stock turnover a. cost of goods sold / average stock b. average stock / cost of goods sold c. sales / stock d. stock / sales

  • A. cost of goods sold / average stockCorrect
  • B. average stock / cost of goods sold
  • C. sales / stock
  • D. stock / sales

Explanation

Rate of stock turnover = cost of goods sold / average stock, and it is measured in times.

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