The "dollar days" inventory measurement is chiefly used to focus management's attention on where inventory is located.

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The "dollar days" inventory measurement is a measure of the average number of days that inventory is held in stock. It is calculated by dividing the average inventory value by the cost of goods sold. The "dollar days" measurement is used to focus management's attention on where inventory is located and how long it is being held.

The "Dollar Days" Inventory Measurement Is Chiefly Used to Focus