Golgappa.net | Golgappa.org | BagIndia.net | BodyIndia.Com | CabIndia.net | CarsBikes.net | CarsBikes.org | CashIndia.net | ConsumerIndia.net | CookingIndia.net | DataIndia.net | DealIndia.net | EmailIndia.net | FirstTablet.com | FirstTourist.com | ForsaleIndia.net | IndiaBody.Com | IndiaCab.net | IndiaCash.net | IndiaModel.net | KidForum.net | OfficeIndia.net | PaysIndia.com | RestaurantIndia.net | RestaurantsIndia.net | SaleForum.net | SellForum.net | SoldIndia.com | StarIndia.net | TomatoCab.com | TomatoCabs.com | TownIndia.com
Interested to Buy Any Domain ? << Click Here >> for more details...

WHILE CALCULATING STOCK TURN RATIO WHY WE TAKE AVARAGE
STOCK

Answer Posted / h.r. sreepada bhagi

First of all it's 'Stock Turnover Ratio" and not 'Stock
Turn Ratio'.

Since the stock volume & value changes frequently over the
course of business during the year, calculation of this
ratio on the basis of opening stock or closing stock would
not serve as the right basis. So a more reasonable analysis
is possible by calculation this ratio based on average stock
holding. There are possibilities of huge variations in the
stock holding based on seasonal demands, nature of industry,
products, growth of the business, etc.

Is This Answer Correct ?    1 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

What is PE ratio formula ?

2490


please send me last 3 years question & solution

2108


Expand------ARN

2469


What do you mean by Revenue? does it include the Service Tax,VAT etc., by any chance ?

2046


I've just started to work as an accounts executive and intending to take up SAP. Can anyone tell me what are the preparations required for me as an accountant to be a successful SAP consultant.

2177


What is miscellaneous expense and when it is used

2110


Hi frnds, can any one tell me how much funds has to be there to convince financially sound during the visa interview and what supporting documents has to be produced. What is backlogs means.....hope the best known will answer.

2055


why are you selecting for the profitbulity analysis costing based& active based

2143


Total numbers of companies listed on stock Exchange?

2553


You configured new asset accounting with three depreciation areas that post in real time. You need to do a partial scrapping to an asset in transaction type. How many document does the transaction create ?( any 1 answer) 1 3 4 6

1529


What do you know about hyd? Tell something about hyd?

2270


Whether setting up of diary plants comes under CMA under Farm Sector or Non Farm Sector

1787


What is the Formula For Return on Working Capital

2202


what is mean by traditional accounting ?

2443


In sales what rule applicable

1894