The Inventory Turnover Ratio Times the Average Days in Inventory

question 56

True/False

The inventory turnover ratio times the average days in inventory equals 365.

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Definitions:

Direct Channel

A distribution method where a company sells its products or services directly to consumers, bypassing intermediaries.

Ultimate Consumers

The final users or purchasers of a product or service, typically individuals who buy for personal, family, or household use.

Producers

Individuals or organizations that create goods or services for sale to consumers or other businesses.

Indirect Channel

A distribution method that involves intermediaries (such as wholesalers or retailers) to move products from the manufacturer to the consumer.