Regarding the measures of inventory managing efficiency, identify the most appropriate answer. (Select all that apply.)
A) Total average value of inventory is equal to the selling price multiplied by finished goods inventory.
B) Inventory turn is the annual cost of goods sold multiplied by average inventory.
C) Days of supply is the inverse of inventory turns × 365.
D) Inventory turn is the annual cost of goods sold divided by average inventory.

Question

Quizplus · Accepted Answer

Days of supply is calculated as the inverse of inventory turns multiplied by 365, and inventory turn is calculated as the annual cost of goods sold divided by average inventory.

Regarding the Measures of Inventory Managing Efficiency, Identify the Most