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A.
\(\frac{sales}{\text{average stock}}\)
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B.
\(\frac{\text{cost of sales}}{\text{average stock}}\)
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C.
\(\frac{\text{cost of sales}}{\text{opening stock}}\)
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D.
\(\frac{\text{cost of production}}{\text{average stock}}\)
Correct Answer: Option B
Explanation
The inventory turnover ratio formula is the cost of goods sold divided by the average inventory for the same period.
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