Question

If COGS is Rs.500000. Average
Stock is Rs.100000. What is
stock holding period in days? *
O Incomplete Information
O 5 days
O 73 days
O 150 days​

Answer 1

Answer:

Cost of goods sold = ₹5,00,000

Average stock = ₹1,00,000

So, Stock turnover ratio = ₹5,00,000 / ₹1,00,000

                                      = 5 times.

Average holding period = 365 days / 5 times

                                      = 73 days.

I hope it helps :)

Explanation:

Answer 2

Stock holding period in days = 73 days

Explanation:

Given:

COGS = 500,000

Average  Stock = 100,000

Find:

Stock holding period in days

Computation:

Stock holding period in days = [Average  Stock / COGS]365 days

Stock holding period in days = [100,000 / 500,000]365

Stock holding period in days = [0.2]365

Stock holding period in days = 73 days

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