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Question : If the inventory turnover ratio is divided into 365, it becomes a measure of - 

Option 1: Average Age of Inventory

Option 2: Sales efficiency

Option 3: Sales Turnover

Option 4: Average Collection Period


Team Careers360 18th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Average Age of Inventory


Solution : Inventory turnover can be used to calculate the average age of the inventory by dividing it by 365.

Hence the correct answer is option 1.

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