The Inventory Days Ratio Measures

question 67

Multiple Choice

The inventory days ratio measures:

• A)the average length of time it takes a company to sell its inventory.
• B)the average length of time it takes the company's suppliers to deliver its inventory.
• C)the level of sales required to keep a company's average inventory on the books.
• D)the percentage change in inventory over the past year.

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Definitions:

Fissure

A long, narrow opening or crack, especially one in the ground or in rock formations.

Eruption Column

A rising column of hot gases, tephra, and rock fragments that erupts high into the atmosphere.

Pyroclastic Flow

A fast-moving cloud of hot volcanic gases, ash, pumice, and rock fragments that generally travel down the flanks of a volcano; synonym: ash flow.

Volcanic Dome

A round-shaped mound formed over a volcanic vent by the slow eruption of viscous lava.