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:

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Manufacturer's Pamphlet

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