ACC 304 Course Great Wisdom / tutorialrank.com ACC 304 Course Great Wisdom / tutorialrank.com | Page 73

17. In the retail inventory method, abnormal shortages are
deducted from both the cost and retail amounts and reported
as a loss.

18. The inventory turnover ratio is computed by dividing
the cost of goods sold by the ending inventory on hand.

19. The average days to sell inventory represents the
average number of days’ sales for which a company has
inventory on hand.