A firm's inventory period can be estimated by the ratio of inventory to daily cost of goods sold.

Name: A firm's inventory period can be estimated by the ratio of inventory to daily cost of goods sold.
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Quizplus · Accepted Answer

The inventory period can be calculated by dividing the average inventory by the cost of goods sold per day. Therefore, the ratio of inventory to daily cost of goods sold can be used to estimate the inventory period.

A Firm's Inventory Period Can Be Estimated by the Ratio