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

Question

Quizplus · Accepted Answer

The number of days' sales in inventory calculates the average number of days it takes to sell inventory and replace it. This provides a measure of the efficiency of inventory management. Inventory turnover measures the number of times inventory is sold and replaced within a period, and retail and gross profit methods are used to estimate the cost of inventory.

Which of the Following Measures the Length of Time It