If the Inventory Turnover Is Divided into 365, It Becomes

question 193

Multiple Choice

If the inventory turnover is divided into 365, it becomes a measure of

• A) sales efficiency.
• B) the average age of the inventory.
• C) sales turnover.
• D) the average collection period.

---

Definitions:

Customers Served

The number of customers that have been provided with products or services by a business during a specific time period.

Planning Budget

A budget created for a specific level of activity; it helps management set financial targets and evaluate performance.

Customers Served

refers to the number or segment of clients to whom a business has provided products or services within a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity level, thereby providing a more useful tool for controlling costs.