alleryStart learning →The inventory conversion period goes by which other name?
ADays of inventory
BDays of insurance
CWays of inventing
DRays of invention
Answer & Solution
Correct answer: A. Days of inventory
1. The period measures how long stock sits before it sells.
2. It is expressed as a number of days.
3. The inventory conversion period is also called the days of inventory.
4. A longer figure ties up more working capital.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 19 'The Importance of Trade Credit and Working Capital in Planning', sections 19.1-19.5_
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