Home For AAT student members AQ 2016 Professional Diploma in Accounting Management Accounting: Decisions and Control
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚

Average inventory holding period


My exam is tomorrow.

I was taught that to work our average inventory holding period you:

Closing inventory / COS *365

And to work out payables period you:

Payables/COS * 365

However these calculations do not give the correct answers in AAT mock exam 1 Q1.7

So how do you do it?


  • Clintm15Clintm15 Well-Known FarehamRegistered Posts: 247
    It's because to obtain the average inventory you need an average inventory calculation.


    Opening inventory + closing inventory / 2.

    Then use this figure instead of closing inventory and see if it works.
    Level 2 - 2011
    Level 3 - 2012
    Level 4 - 2013

    F4 - Corporate Law - Dec 2015 (passed)
    F5 - Performance Management - Dec 2014 (passed)
    F6 - Taxation - Dec 2013 (passed)
    F7 - Financial Reporting - Jun 2014 (passed)
    F8 - Audit & Assurance - Dec 2015 (passed)
    F9 - Financial Management - Jun 2015 (passed)
Sign In or Register to comment.