![]() This can include materials costs, labor expenses, utilities, and more. The cost of goods sold includes all expenses related to the production of your company’s goods or services. ![]() You’ll have to calculate two numbers to do the inventory turnover calculation: COGS and average inventory.Īverage inventory (which you get by adding the beginning inventory and ending inventory and dividing that number by 2) is vital because your company’s inventory can fluctuate throughout the year.įor example, a big-box retailer may stock up on more inventory to accommodate higher sales around a high-volume period of time like Black Friday or Christmas.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |