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:

Post Hoc, Ergo Propter Hoc

A logical fallacy where it is assumed that because one event followed another, the first event was the cause of the second.

Fallacy Of Division

The erroneous assumption that what is true of a whole necessarily applies to its individual parts or members.

Post Hoc, Ergo Propter Hoc

A logical fallacy that assumes if one event occurs after another, the first event must have caused the second.

Generalizations

Broad statements or concepts that apply to multiple instances, often used to simplify complex ideas.