The inventory turnover ratio and days to sell measure will be affected by the cost flow assumptions used,which causes problems for financial statements users.

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The cost flow assumptions used (such as FIFO, LIFO, and average cost) can impact the value of inventory and cost of goods sold, which in turn affects the inventory turnover ratio and days to sell measure. This can create challenges for financial statement users who rely on these ratios to evaluate a company's performance and financial health.

The Inventory Turnover Ratio and Days to Sell Measure Will