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Average Inventory is used to calculate how many products are sold in a day.

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Amanda Barbosa
2 years ago
Question 2 of 18
Career development
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Average Inventory is used to calculate how many products are sold in a day.

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Retail Sales: Fundamental Formulas You Should Know
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Why?

It is used to measure the value of the inventory during two or more periods. It can be useful for comparisons when analyzing sales volume, allowing a company to track inventory trends. Also, it's helpful for companies to manage costs, sales and relationships.
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Source: "Average Inventory" by Adam Hayes on investopedia.com

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