Multiple choice

Star Ltd used raw material 'Y' during accounting year amounting to Rs. 6,00,000. The value of opening stock was Rs. 60,000 and the value of closing stock was Rs. 40,000. How many times will be the stock turnover ratio?

  1. 10 times

  2. 12 times

  3. 9 times

  4. 13 times

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Right answer because It is 12 times Stock Turnover Ratio -      Cost of materials used during the year                                         Average Stock of materials used during the year   Cost of Materials used during the year = Rs 6,00,000   Average Stock  =    Opening Stock  +  Closing Stock                                                   2                            =    60,000  +  40,000   =  Rs 50,000                                             2   Stock Turnover Ratio =   6,00,000        = 12 times                                              50,000 

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