The amount of time that a firm holds inventory in stock is referred to as which one of the following?

Question

Quizplus · Accepted Answer

The inventory period refers to the amount of time that inventory is held by a firm, from the time it is purchased until it is sold. This is a key metric for inventory management and supply chain efficiency. Choice B, operating cycle, refers to the time it takes for a firm to convert its inventory into cash and then use that cash to pay its operating expenses. Choices C, D, and E refer to other aspects of the cash flow cycle, including payment of accounts payable, collection of accounts receivable, and the overall cash conversion cycle.

The Amount of Time That a Firm Holds Inventory in Stock