Which of the Following Figures Is Needed to Calculate Inventory

question 45

Multiple Choice

Which of the following figures is needed to calculate inventory turnover?

• A) annual cost of sales
• B) number of levels in the distribution channel
• C) slotting allowance fees
• D) number of product returns
• E) number of stock-outs

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Definitions:

Standard Labor Hours

The estimated amount of time that should be required to produce a unit of product or to complete a process, task, or project.

Direct Labor Rate Variance

A measure of the difference between the actual cost of direct labor and the expected (or standard) cost.

Standard Rate

A predetermined cost or charge that applies to a particular activity, operation, or product within a business environment.

Fixed Factory Overhead Volume Variance

A measure used in cost accounting to determine the difference between the budgeted and actual volume of production, affecting fixed overhead costs.