A useful measure of inventory performance is called "dollar days." In which of the following areas are dollar days measurements not useful?
A)Marketing
B)R & D
C)Manufacturing
D)Project management
E)Purchasing

Question

Quizplus · Accepted Answer

Dollar days is a measure of the length of time inventory is held, and as such, it is not applicable to areas like marketing, R&D, project management, or other areas that do not involve inventory holding. However, dollar days can be a useful performance measure in manufacturing and purchasing, where inventory holding can have a significant impact on operational and financial performance.

A Useful Measure of Inventory Performance Is Called "Dollar Days