The firm's inventory conversion period (measured in days) is equal to its average inventory divided by its .
A)cost of sales
B)sales
C)cost of sales/365
D)none of these

Question

Quizplus · Accepted Answer

The inventory conversion period is calculated by dividing the average inventory by the cost of sales per day, which is equivalent to dividing the cost of sales by 365 days. Therefore, the correct option is C.

The Firm's Inventory Conversion Period (Measured in Days) Is Equal