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Struggling to differentiate between inventory turnover and holding period

topcattopcat Trusted RegularRegistered Posts: 452
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 :-)

Comments

  • Lucy_MLucy_M Feels At Home Registered Posts: 136
    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
  • topcattopcat Trusted Regular Registered Posts: 452
    Hi Lucy :-) Thanks a lot think I have been over thinking this one
  • Lucy_MLucy_M Feels At Home Registered Posts: 136
    Plenty more to be worried about in FS :001_tongue:
  • topcattopcat Trusted Regular Registered Posts: 452
    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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