Asked by
Molly Bebber
on Nov 18, 2024Verified
Generally, the lower the number of days' sales in inventory, the better.
Days' Sales
Refers to the ratio that indicates how many days worth of sales a company has in inventory, providing insight into inventory management efficiency.
Inventory
An accounting term for goods and materials that a business holds for the ultimate goal of resale or repair.
- Comprehend the implications of inadequate inventory management, including surplus and deficit inventory conditions.
Verified Answer
GS
Learning Objectives
- Comprehend the implications of inadequate inventory management, including surplus and deficit inventory conditions.