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Struggling to differentiate between inventory turnover and holding period

topcattopcat Trusted RegularPosts: 452Registered
in AAT Level 4 (Level 8 in Scotland)
What's the difference as I'm struggling to understand after reading it over and over? If anyone could help would be appreciated :-)
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  • Lucy_MLucy_M Feels At Home Posts: 136Registered
    Hi,
    Basically there isn't, it uses the same figures but the other way round, if you take the number of days holding period and times it by the turnover figure it will equal 365. I guess it depends on who is using the figures and why, for example a stock controller would possibly be more interested in how long stock is held for but an accountant looking at the companys use of resources would possibly be more interested in the turnover figure?! I wouldn't worry about it too much... xx
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  • topcattopcat Trusted Regular Posts: 452Registered
    Hi Lucy :-) Thanks a lot think I have been over thinking this one
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  • Lucy_MLucy_M Feels At Home Posts: 136Registered
    Plenty more to be worried about in FS :001_tongue:
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  • topcattopcat Trusted Regular Posts: 452Registered
    Lucy_M wrote: »
    Plenty more to be worried about in FS :001_tongue:
    Haha blooming tell me about it, enough to worry about for a very long time Considering eating the book to see if it stays in that way, with a knife and fork (have to be civil about it)
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