Accounts payable / (COGS / 365).
A) Inventory conversion period
B) Average collection period
C) Average payment period
D) Inventory turnover

Name: Accounts payable / (COGS / 365). A) Inventory conversion period B) Average collection period C) Average payment period D) Inventory turnover
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Question

Quizplus · Accepted Answer

This formula calculates the average payment period, which is the number of days it takes for a company to pay its suppliers.

Accounts Payable / (COGS / 365)