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Which of the following measures the length of time it takes to acquire, sell and replace inventory?a. inventory turnoverb. number of days' sales in inventoryc. retail method of inventory costingd. gross profit method of inventory costing

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hamzatauseef

Answer:

Inventory Turnover

Explanation:

This is an example of inventory turn over ratio.

By definition an inventory turnover ratio measures the number of times the the company has sold and replaced the inventory.

It is calculated by the following formula,

Inventory Turnover = Cost of goods sold / Average inventory.

All the other options are irrelevant in context with the definition provided.

Hope that helps.

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