Which of the following is NOT a component of calculating the Inventory Turnover?

The calculation of Inventory Turnover assesses how efficiently a company manages its inventory. This metric is typically calculated using the formula:

Inventory Turnover = Cost of Goods Sold (COGS) / Average Inventory

In this context, Sales, Ending Inventory, and COGS are all key components. COGS directly relates to the cost associated with goods that have been sold during a specific period, and Average Inventory is used to reflect more accurately the inventory levels over that period.

Accounts Receivable, however, is not included in this calculation. It represents amounts owed to the company by customers for sales made on credit, but it does not influence the turnover of inventory directly. The Inventory Turnover focuses solely on the relationship between sales of inventory and the amount of inventory held.

In summary, the correct answer identifies Accounts Receivable as not relevant to the Inventory Turnover formula, as it deals with the sales on credit rather than the physical inventory and its turnover rate.