QUESTION 19 OF 25

What are 'Days Inventory on Hand', and what is indicated when days on hand grows?

This is a question that gauges whether you understand metrics and can use them to catch trends in the business. Days Inventory on Hand is a metric that measures the health of the inventory asset. A high or growing metric indicates that there are problems selling through inventory.

"Days Inventory on Hand is an important metric that measures the health of inventory. The metric indicates how many days of cost of goods sold are hung up in inventory at any given time. A low number of days indicates that the company is efficiently selling through inventory. A growing number of days indicates that there may be some issues with sell-through, which could lead to obsolescence issues in the future. Given this, sales strategy should be adjusted if Inventory DOH is growing."

Unlock all 25 Inventory Accountant questions

Unlock expert responses for technical accounting and inventory reconciliation questions.

Get Started

Previous Question Next Question

Inventory Accountant Mock Interview

What are 'Days Inventory on Hand', and what is indicated when days on hand grows?

Unlock all 25 Inventory Accountant questions

25 Inventory Accountant Interview Questions & Answers