Question 8
Kinta Modern Stores sold goods worth Le 400,000 in 2019. Its opening stock was Le 100,000. It bought goods worth Le 240,000 during the year and was left with Le 140,000 worth of goods at the end of the year.
- Calculate the stores’ rate of turnover.
- State five factors that affects rate of turnover
Observation
(b) Factors that Affect the Rate of Turnover
- The reputation (goodwill) of the company.
- Type, nature and variety of goods being sold.
- Availability of goods being sold.
- The level of publicity/advertisement put in place by the company.
- The pricing policy adopted by the company.
- The level of competition in the business.
- Nearness to consumers.
- Extent of good packaging and branding.