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WAEC Commerce 2020 Question 15

Question 15

Business Calculations

When the cost of sales is divided by the average stock, the result is

  1. A.gross profit.
  2. B.net profit.
  3. C.rate of turnover.
  4. D.working capital.
Show the answer and explanation

Answer: C (rate of turnover.)

Explanation

Rate of stock turnover = cost of sales ÷ average stock.