Day Sales of Inventory (DSI): Formula & Examples


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question 1 of 3

Which of the following are reasons why managers use the days' sales in inventory formula?

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1. In order to calculate days' sales of inventory, you must consider the company's _____.

2. Which of the formulas below is used to calculate days' sales of inventory?

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About This Quiz & Worksheet

This quiz and its attached worksheet quickly test your knowledge of the day sales of inventory (DSI) measure. You will be quizzed on how and why this formula is used.

Quiz & Worksheet Goals

In this assessment, you'll make sure you understand:

  • The formula used to calculate DSI
  • Reasons DSI is used
  • Documents used to find and record DSI

Skills Practiced

  • Reading comprehension - ensure that you draw the most important information from the material, such as the variables you need to know to calculate DSI
  • Critical thinking - apply relevant concepts to examine information about the characteristics of the DSI
  • Information recall - access the knowledge you've gained regarding what the formula for DSI is

Additional Learning

If you would like to know more about this type of accounting, read the lesson titled Day Sales of Inventory (DSI): Formula & Examples. You will learn about:

  • Real world uses of this formula
  • Examples of it in use
  • Industries that make use of this metric