There is no universally accepted definition of a percentile. Using the 65th percentile as an example, the 65th percentile can be defined as the lowest score that is greater than 65% of the scores. This is the way we defined it above and we will call this Definition 1..
b. The perpetual inventory system updates inventory records at the end of a period. c. The periodic inventory system updates inventory at the end of a period. d. The perpetual inventory system continually updates inventory records. e. Both C and D are true statements.
With a smaller number, it is expected that your inventory is not very old, and that more of it is in saleable condition. It also represents a business that is in a more liquid position. Computed: Days of Inventory On Hand is calculated by first dividing the cost of goods sold by 360. Then divide the current inventory by the number you have just obtained with the first step. Days of Inventory On Hand Defined: This calculation tells you that if you were to stop ordering merchandise, how soon would you have an empty building.