Question

what does the inventory turnover ratio calculate?
how often a businesss entire inventory is converted into sales
the average cost of goods sold (cogs) that accrue with each sale
the optimal amount of inventory that a business should have in stock

Explanation:

The inventory turnover ratio is a financial metric in Business (subfield: Finance/Accounting). It measures the frequency at which a company's inventory is sold and replaced over a period. The first option correctly describes this, while the second refers to something related to COGS per sale (not inventory turnover) and the third is about optimal inventory level (not what the ratio calculates).

Answer:

A. how often a business's entire inventory is converted into sales