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Answer :
f. 75 is average inventory level over time.
what is average inventory level over time?
Calculating average inventory involves averaging inventory items over two or more accounting periods. Add the inventory counts at the end of each month, then divide the total by the number of months to determine the average inventory throughout a year.
Given that 150 boxes were ordered, the amount of stock on hand was 0.
Below is the formula for Average Inventory Level:
Average inventory level is equal to (number of orders plus inventory on hand) / 2.
Inventory level on average = 150 + 0 / 2.
Inventory level on average = 150 / 2
75 is the average inventory level.
Consequently, 75 is the average inventory level across time.
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