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WAEC Commerce 1997 Question 56

Question 56

Business Calculations

The cost of goods sold divided by the average stock held during a trading period gives the

  1. A.gross profit
  2. B.net profit
  3. C.net sales
  4. D.rate of stock turnover
  5. E.sum of the opening and closing stock
Show the answer and explanation

Answer: D (rate of stock turnover)

Explanation

Rate of stock turnover = cost of goods sold ÷ average stock.