Question : If the inventory turnover ratio is divided into 365, it becomes a measure of -
Option 1: Average Age of Inventory
Option 2: Sales efficiency
Option 3: Sales Turnover
Option 4: Average Collection Period
Answer (1)
21st Jan, 2024
Correct Answer: Average Age of Inventory
Solution : Inventory turnover can be used to calculate the average age of the inventory by dividing it by 365.
Hence the correct answer is option 1.
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