AVERAGE AGE OF INVENTORY Definition

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AVERAGE AGE OF INVENTORY is calculated by the formula: 365 / inventory turnover.

Learn new Accounting Terms

ARR is an acronym for Accounting Rate of Return.

MARKET VALUE, in general, is the price at which buyers and sellers trade similar items in an open marketplace. In the absence of a market price, it is the estimated highest price a buyer would be warranted in paying and a seller justified in accepting, provided both parties were fully informed and acted intelligently and voluntarily. See also OPEN MARKET VALUE (OMV).

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