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Sir,
In this question the inventory turnover days were given and asked to find out the total inventory.But in the answer they’ve substituted in Inventory days formula
Strictly they should not call it the ‘inventory turnover period’ because it causes confusion, but since they have added the work ‘period’ and since it is given in days it can only mean the inventory days.
Sir,
But isn’t inventory turnover inherently in period
Like if inventory turnover cogs/avg inv
= 90 then doesn’t it mean 90 days i.e it takes 90 days for the inventory to get turned overThe inventory turnover on its own is the number of times the inventory gets turned over, and is cost of sales / inventory.
Inventory turnover period is the same as the inventory days, which is the number of days it takes for the inventory to be turned over which is the same as the number of days that inventory is held for.
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