Days inventory held is a measure of the

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Quizplus · Accepted Answer

Days inventory held is a measure of the average length of time an inventoried item is in stock before it is sold. It is calculated by dividing the average inventory by the cost of goods sold and then multiplying the result by the number of days in the period being measured. This metric helps businesses evaluate their inventory management practices and identify areas where they can improve their supply chain efficiency. Option A describes lead time, B describes average inventory value, and D is incorrect as it is mutually exclusive with the other options.

Days Inventory Held Is a Measure of the