DFS Question

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi there

Can someone please help me with the classication of the following ratio. I think it is profitability but am unsure:

Cost of sales to Finished Goods:
Cost of Sales / Finished Goods

Cheers
Ange

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS Question

    It appears to be measuring stock turnover. I can't see this is part of profitability
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:DFS Question

    Hi Bryan

    I ended up putting it under effiency, I thought reading the question again it looks like they are seeing how efficient they are at making the stock into finished goods - hope this was right. I should find out soon though.

    Thanks
    Ange

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