Which of the following is used to analyze the efficiency and effectiveness of inventory management?
A) inventory turnover only
B) days' sales in inventory only
C) both inventory turnover and days' sales in inventory
D) neither inventory turnover nor days' sales in inventory

Question

Quizplus · Accepted Answer

Both inventory turnover and days' sales in inventory are used to analyze the efficiency and effectiveness of inventory management. Inventory turnover measures how many times inventory is sold and replaced in a given period, while days' sales in inventory measures the number of days it takes for inventory to be sold. Together, these metrics provide a comprehensive analysis of how well a company is managing its inventory levels.

Which of the Following Is Used to Analyze the Efficiency