Asked by
amoako sampson
on Oct 28, 2024Verified
The average days to sell inventory decreases as inventory turnover increases.
Average Days
A measure that typically refers to the average number of days an asset is held or the average number of days it takes for a company to convert certain assets into cash.
Sell Inventory
The process of selling goods that are held for sale in the ordinary course of business, turning inventory into revenue.
Inventory Turnover
A ratio showing how many times a company's inventory is sold and replaced over a period, indicating the efficiency of inventory management.
- Understand the calculation and significance of inventory turnover.
Verified Answer
BC
Learning Objectives
- Understand the calculation and significance of inventory turnover.