average inventory
The average amount of inventory during a period of time.
Average Inventory:
The approximate amount of merchandise on hand during a certain period.
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Moving average inventory method
An inventory costing methodology that calls for the re-calculation of the average cost of all parts in stock after every purchase.
Moving average inventory method - A method used under a perpetual inventory system, which requires that a new weighted average cost must be calculated after each purchase ...
average inventory value reduced by 23%, delivery frequency reduced by 69%. Overall reduction of manãƒ"hour requirement ...
If a company's average inventory was $1,000,000, and the annual cost of goods sold was $8,000,000, one would deduce that inventory turned over 8 times (approximately once every 45 days).
number of days an average inventory item takes to sell:
Average Age of Inventory
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cost of goods sold
average inventory
Inventory turnover can be determined 2 different ways:
Add together the inventory balances from the beginning of the year and the end of the year, and divide by 2 ...
Turnover (Business) - Turnover is the number of times that an average inventory of goods is sold during a fiscal year or some designated period.
The ratio of annual sales to average inventory, which measures the speed at which inventory is produced and sold. Low turnover is an unhealthy sign, indicating excess stocks and/or poor sales.
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Merchandise turnover is the number of times a company’s average inventory was sold during an accounting period. It is calculated by dividing cost of goods sold by the average merchandise inventory balance.
Merchandise turnover =
Merchandising ...
Inventory Turnover = Cost of Goods Sold/Average Inventory
*Food cost includes coffee, tea, and juices sold with the meal. If no alcohol is sold, food costs include soft drinks.
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Inventory turnover
The ratio of annual sales to average inventory which measures the speed that inventory is produced and sold. Low turnover is an unhealthy sign, indicating excess stocks and/or poor sales.
inventory turns - Inventory turnover (above). Total cost of sales divided by inventory. Usually calculated using the average inventory over an accounting period, not an ending-inventory value.
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For example, if a firm's average inventory level is equivalent to one quarter of its annual sales, it can be said that inventory turns four times a year.
Inventory Turnover Ratio: A measure of the management of inventory computed by dividing cost of goods sold (COGS) by the average inventory for a period of time.
Invoice: An itemized list of goods shipped or services rendered with cost.
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It is found by dividing cost of sales by average inventory. Receivables turnover is a measure of the time it takes to collect receivables. It is found by dividing net credit sales by average net receivables.
A measure of management's control of its investment in inventory, i.e. the speed inventory is produced and sold. It is measured as the ratio of annual sales to average inventory.
 See also: Expense, Cost of goods sold, Cost of goods, Values, Inventory turnover
  
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