Inventory analysis

Inventory analysis,

Definition of Inventory analysis:

  1. Technique for determining the optimum level of inventory for a firm, it commonly employs one of the two formulas: (1) Inventory turnover = Cost of goods sold ÷ average inventory. (2) Number of days sale in inventory = inventory at the end of an accounting period ÷ average daily cost of goods sold.

Meaning of Inventory analysis & Inventory analysis Definition