Which of the following measures the length of time it takes to acquire, sell, and replace inventory?
A) inventory turnover
B) days' sales in inventory
C) retail method of inventory costing
D) gross profit method of inventory costing

Question

Quizplus · Accepted Answer

Days' sales in inventory measures the length of time it takes to acquire, sell, and replace inventory by dividing the average inventory balance by the cost of goods sold, and multiplying the result by the number of days in the period. A lower number indicates a faster turnover of inventory, which is generally preferred.

Which of the Following Measures the Length of Time It