Which measure(s) is(are) useful in evaluating the efficiency in managing inventories? 1. Inventory turnover
2) Days in inventory
A) 1 only.
B) 2 only.
C) Both 1 and 2.
D) Neither 1 nor 2.

Question

Quizplus · Accepted Answer

Both inventory turnover and days in inventory are useful measures in evaluating the efficiency in managing inventories. Inventory turnover provides information on how quickly a company is selling and replacing its inventory, while days in inventory measures the average number of days it takes to sell inventory. By comparing and analyzing both metrics, a company can evaluate and improve its inventory management efficiency.

Which Measure(s) Is(are) Useful in Evaluating the Efficiency in Managing