Selected Information from the Accounting Records of Ellison Manufacturing Company

question 68

Multiple Choice

Selected information from the accounting records of Ellison Manufacturing Company follows:

What is the number of days' sales in average inventories for the year?

• A) 102.2
• B) 94.9
• C) 87.6
• D) 68.1

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Definitions:

Marginal Benefit

The supplemental value or usefulness derived from using another unit of a good or service.

Marginal Cost

The increase in total cost that arises from producing one additional unit of a good or service.

Net Benefit

The total positive impact or gain subtracted by the total cost or negative impact, typically used in the analysis of business or policy decisions.

Marginal Benefit (MB)

The augmented satisfaction or usefulness obtained by consuming or producing one extra unit of a good or service.