The average age of inventory is viewed as the average length of time inventory is held by the firm or as the average number of days' sales in inventory.

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The statement is true. The average age of inventory is commonly used as a measure of how long a company is holding its inventory before selling it, and it can be expressed either in terms of days or months. It is an important metric for inventory management and can help a company optimize its inventory levels and minimize costs.

The Average Age of Inventory Is Viewed as the Average