Can days sales in inventory be too low


Response to the following problem:

The days' sales in inventory is an estimate of the number of days that it will take to sell the current inventory.

a. What is the ideal number of days' sales in inventory?

b. In general, does a company want many days' sales in inventory?

c. Can days' sales in inventory be too low?

 

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Financial Accounting: Can days sales in inventory be too low
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