When calculating days debtors the average debtors level is


When calculating days inventory, the average inventory level is compared with the cost of sales. When calculating days debtors, the average debtors level is compare with the sales revenue. Explain why the former ratio uses cost of sales whereas the latter uses sales revenue.

Solution Preview :

Prepared by a verified Expert
Cost Accounting: When calculating days debtors the average debtors level is
Reference No:- TGS01127804

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)