Question

Inventory turnover in days $=$ Days during the period $÷$ __________.

• A. Inventory turnover ratio
• B. Material consumed during the period
• C. Cost of average stock during the period
• D. None of these

Answer 1

The correct option is A Inventory turnover ratio

Inventory turnover in days depicts the frequency of days in which an inventory is sold in a particular period of time.

Inventory turnover ratio may be calculated as:

Cost of Good sold divided by Average Inventory

Inventory turnover in days= No of days divided by inventory turnover ratio.