Derive the stock turnover period. (Average stock = 23000. Cost of sales = 300000 year = 365 days).

By: |Published on: Nov 30|Categories: Accounting JAMB| 0 comments

A. 28 days
B. 42 days
C. 27 days
D. 23 days

Correct Answer:

Option A – 28 days

Explanation

Average stock/cost of sales x 365days.
23,000 ÷ 300,000 x 365 = 27.9 (Approximately 28 days)

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