Is the Cost of Goods Sold percentage effected by inventory turn?

Question

In a retail setting. If I have some inventory that might turn just once in a year will that increase my COGS percentage. Assuming that I reduce my retail price quarterly but never lower it below my actual cost.

Answer 1

In general terms, the formula used to compute your cost of goods sold is the following:

opening inventory
+ additions during the year
goods available for sale
- year-end inventory
cost of goods sold

Answer 2

i assumed that u know what's COGS, basically it very much depend on your inventory valuation. by acceptable accounting standards, value your inventory at the lower of cost or net realisable value. if your inventory costs is subject to frequent fluctuations you may want to consider using average cost method. reducing your retail price merely reduces your margin.