The average number of days the company has inventory in its possession in the form of raw materials, work-in-process, and finished goods is best described as the:
A) operating cycle.
B) cash conversion cycle.
C) day's sales in inventory.
D) day's sales outstanding.

Question

Quizplus · Accepted Answer

Day's sales in inventory measures the average number of days a company holds its inventory before selling it. This includes all forms of inventory: raw materials, work-in-process, and finished goods.

The Average Number of Days the Company Has Inventory in Its