[mraab]

I have seen turnover ratios in days using a 360-day year and a 365-day year. Which one do I use? Becker says 365 in the passmaster software, but since I’ve seen conflicting definitions, I’m hoping someone here could tell me definitively. Thanks!

BEC 82 (10/5/2011)
AUD 90 (1/5/2012)
REG 86 (2/29/2012)
FAR *5/31/2012 (first time I'm champing at the bit for my score)

[Anonymous]

IF you get a question on the exam relating to this, they would tell you to assume 365 or 360 days. Hope that helps.

[Lidis]

The inventory ratios

Number of day's supply in average inventory = 365/Inventory turnover

Inventory turnover = COGS/Avg Inventory

[Anonymous]

I always use 365 days unless the problem states 360 (or other # of days year). The one formula that I always had to remember that had 360 days was the “cost-of-credit” should a customer decide to take the discount for making an early payment.

[Author]

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