Which ratio measures how many days inventory is held before the final product is sold?
A) inventory turnover
B) days' sales in inventory
C) total asset turnover
D) inventory intensity ratio

Question

Quizplus · Accepted Answer

Days' sales in inventory measures the average number of days a company holds inventory before selling it. This ratio is used to assess the efficiency of inventory management.

Which Ratio Measures How Many Days Inventory Is Held Before