Megamart operates 365 days a year. annual inventory turns of a popular product is 11. which represents 33 days of supply.
inventory means all the items, goods, merchandise, and materials held by a business for selling in the market to earn a profit. Example: If a newspaper vendor uses a cycle to deliver newspapers to the customers, only the newspaper will be considered inventory. The cycle will be treated as an asset. Inventory is a major asset for any manufacturing or trading business, so it’s crucial for business owners to understand what it really means. In another common definition, certain industries like manufacturing and service use specialized definitions that account for all of the assets relevant to that industry.
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