PNB Cos Has Sales of $250,000 and Cost of Goods Sold

question 59

Multiple Choice

PNB Cos. has sales of $250,000 and cost of goods sold of $120,000. The firm had a beginning inventory of $19,000 and an ending inventory of $13,000. What is the length of the days' sales in inventory?

• A) 27.74 days
• B) 57.79 days
• C) 18.98 days
• D) 39.54 days

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Definitions:

Production Processes

The sequence of operations or steps involved in manufacturing a product or delivering a service, from raw material to final product.

Production Rate

The speed at which products are manufactured or produced within a given time frame.

Volume Flexibility

The ability of a manufacturing or service system to economically adjust its output in response to fluctuations in demand.

Variety Flexibility

The ability of a manufacturing system or company to quickly adapt its operations to produce a wide range of products.