What is the duration calculation for the inventory holding period?

The correct method for calculating the inventory holding period is to divide the cost of inventory by the cost of sales and then multiply by 365. This formula allows us to measure how long, on average, inventory is held before being sold, which is crucial for assessing operational efficiency.

By calculating the inventory holding period in this way, you gain insights into how quickly a company moves its stock compared to its cost, rather than its selling price. The multiplication by 365 converts this figure into days, offering a practical timeframe that is easier to analyze and compare across different periods or companies.

The other options do not provide a meaningful measure of the inventory holding period or involve unrelated financial metrics, making them less relevant for this specific calculation.