Which of the following measures the relationship between cost of goods sold and the amount of inventory carried during the period?

A) inventory turnover
B) fixed asset turnover
C) retail method of inventory costing
D) gross profit method of inventory costing

Inventory turnover measures how efficiently a company is using its inventory to generate sales. It is calculated by dividing the cost of goods sold by the average inventory held during the period. This ratio helps to determine how often a company is selling its inventory and restocking it. A high inventory turnover ratio is generally considered positive as it indicates that a company is efficiently managing its inventory and generating sales.