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

QUALITY is a degree or grade of excellence or worth; can be highly subjective.

VISUAL-FIT METHOD is a cost estimation method where an analyst examines a cost by plotting points on a graph (called a scatter diagram) and places a line through the points to yield a cost function. This method is more objective than the account-classification method, but it is still lacking because two cost analysts could (and likely would) visually fit different lines. Such an approach is useful, though, because it helps spot non-representative data points, or outliers.

Enter Search Term

*Enter a term, then click the entry you would like to view.*