Days to sell is calculated as:
A)365 divided by ending inventory.
B)Cost of goods sold divided by ending inventory.
C)365 divided by Inventory turnover ratio.
D)Cost of goods sold divided by Average inventory.

Question

Quizplus · Accepted Answer

Days to sell is calculated as 365 divided by inventory turnover ratio. This ratio measures how many times a company sells its average inventory in a period, and dividing 365 by this ratio gives the number of days it takes to sell the inventory on hand.

Days to Sell Is Calculated As