Which of the following is used to analyze the efficiency and effectiveness of inventory management?
A) inventory turnover only
B) number of days' sales in inventory only
C) both inventory turnover and number of days' sales in inventory
D) neither inventory turnover or number of days' sales in inventory

Question

Quizplus · Accepted Answer

Both inventory turnover and number of days' sales in inventory are used to analyze the efficiency and effectiveness of inventory management. Inventory turnover measures how quickly inventory is sold and replaced, while number of days' sales in inventory indicates how long the inventory sits on shelves before it is sold. Both metrics help businesses assess how well they are managing their inventory levels and whether they need to make changes to improve their inventory management.

Which of the Following Is Used to Analyze the Efficiency