The Average Days to Sell Inventory Ratio Is Calculated as

question 110

Multiple Choice

The average days to sell inventory ratio is calculated as

• A) average inventory divided by inventory turnover.
• B) inventory turnover divided by cost of goods sold.
• C) inventory turnover divided by 365 days.
• D) 365 days divided by inventory turnover.

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Definitions:

Opportunity Cost

The cost of foregone alternatives, representing the benefits an individual, investor, or business misses out on when choosing one alternative over another.

Interest Rate

is the cost of borrowing money or the return on investment, expressed as a percentage of the principal, over a specified period.