Average age of inventory is viewed as the average length of time inventory is held by a firm or as the average number of days' sales in inventory.

Question

Quizplus · Accepted Answer

The statement is true. Average age of inventory is a widely used inventory management metric and can be calculated in two ways - as the average length of time inventory is held by a firm or as the average number of days' sales in inventory.

Average Age of Inventory Is Viewed as the Average Length