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WAEC Commerce 2020 Objective — Question 15

Question 15 of 50 from the West African Examinations Council (WAEC) Commerce 2020 Objective paper, with the correct answer and a full explanation.

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When the cost of sales is divided by the average stock, the result is

  • A. gross profit
  • B. net profit
  • C. rate of turnoverCorrect
  • D. working capital

Explanation

The rate of stock turnover = cost of goods / average stock.

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