The average days to sell inventory is calculated as

Question

Quizplus · Accepted Answer

The average days to sell inventory is calculated by dividing the average inventory balance by the cost of goods sold and multiplying by the number of days in the period. The formula is (Average Inventory / Cost of Goods Sold) x Number of Days in the Period. Choice B is the only option that includes the necessary variables (inventory, cost of goods sold, and time period) to make this calculation.

The Average Days to Sell Inventory Is Calculated as