If DIOH is approximately 61 days, what is the approximate inventory turnover?

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Multiple Choice

If DIOH is approximately 61 days, what is the approximate inventory turnover?

Explanation:
Inventory turnover shows how many times inventory is sold and replaced over a period, and DIOH tells how long inventory sits before it’s sold. They’re essentially inverses over a year: turnover is roughly 365 divided by DIOH. With DIOH about sixty-one days, 365 divided by sixty-one comes to roughly six. So the approximate inventory turnover is about six times per year. That aligns with the idea that longer days on hand means fewer turns, while shorter days would imply more turns.

Inventory turnover shows how many times inventory is sold and replaced over a period, and DIOH tells how long inventory sits before it’s sold. They’re essentially inverses over a year: turnover is roughly 365 divided by DIOH. With DIOH about sixty-one days, 365 divided by sixty-one comes to roughly six. So the approximate inventory turnover is about six times per year. That aligns with the idea that longer days on hand means fewer turns, while shorter days would imply more turns.

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