PEV - Nov 04 - stock turnover in months?

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
I am going throgh the Nov 04 PEV paper at the moment and cannot get the stock turn over in months to come to the AAT's answer. My osborne book does not even say how to calculate it in months! My BBP pass cards say that it is stock/Cost of sales x 12 but this come out to 1.09 and the AAT answer is 2.2, HELP please!<BR><BR>This is seriously begining to feel like one step forward and ten steps back!!!

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  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV - Nov 04 - stock turnover in months?

    C/Stock 120 / Materials 660 = 0.18<BR><BR>0.18 x 12 (Months) = 2.2 Times<BR><BR>I had the exact same problem! Still dont quite understand it
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV - Nov 04 - stock turnover in months?

    Thanks you are a star! That was totally bugging me. To be honest I think that is just going too have to be one question that I pray does not come up cos there is no way I would have got that!<BR><BR>Don't think that Leo was too impressed with me last night, he just grunted at me when I said I wasn't staying for the rest of the lesson, OPPS!<BR>
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV - Nov 04 - stock turnover in months?

    LoL i wouldnt worry about it, we was just doing a past paper anyway. That Stock question really confused me too. For the formula i use it just didnt make sense
  • System
    System Posts: 100,534 🤖 Admin 🤖
    PEV - Nov 04 - stock turnover in months?

    I beleive that stock turnover shows how aggressively a company is trading, it shows how long it takes to turn stock into products. Cost of sales figure will give you your purchases for the year therefore stock/cost of sales x 365 will show how fast stock is used ie stock turnover.<BR><BR>hope this helped<BR><BR>

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