Accounts payable turnover measures:
✓ Correct Answer: Option B
AP Turnover = COGS / Avg AP. Higher ratio = paying suppliers faster. Days Payable Outstanding (DPO) = 365/AP Turnover. Cash management: balance supplier relations vs preserving cash.
AP Turnover = COGS / Avg AP. Higher ratio = paying suppliers faster. Days Payable Outstanding (DPO) = 365/AP Turnover. Cash management: balance supplier relations vs preserving cash.